Shares of On Holding fell $2.70, or 7.2%, to $34.83 at 2:50 p.m. ET Tuesday, from Monday’s close of $37.53, after the Swiss running-shoe maker reported third-quarter results before the market opened.
Net sales rose 17.2% to 931.4 million Swiss francs, the first time quarterly sales topped 900 million francs. Sales through On’s own stores and website, which it calls direct-to-consumer, rose 25.0% to 393.3 million francs. That fell short of the 417.7 million francs analysts expected, according to a StreetAccount estimate reported by CNBC, which said investors focused on the miss. Wholesale sales rose 12.2% to 538.2 million francs.
Net income rose 36.9% to 162.8 million francs. The quarter included 52.6 million francs of U.S. tariff refunds, which lifted the gross margin to 72.6%. Without them, it was 66.9%.
On kept its forecast for 2026 sales growth in the low-20% range at constant currency and said it plans for sales growth to speed up in the fourth quarter. It described the market as “a promotional environment.”
