Sportswear brand On raised its annual gross margin forecast after beating third-quarter sales estimates on Tuesday, as new product launches and celebrity collaboration efforts drove demand across its premium shoes and apparel collections. The company has grown fast and expanded its store footprint globally, taking market share from bigger rivals such as Nike and Adidas. The company said its holiday campaign is underway and new products are gaining traction. On expects fourth-quarter sales growth to accelerate, even as it maintains its premium positioning and full-price discipline amid a promotional retail environment. However, the company stuck to its annual sales forecast of 3.47 billion Swiss francs and 3.56 billion Swiss francs. On, which authorized its first share buyback plan up to $1 billion through the end of 2029 in September, recently entered football, the world's most popular sport, by signing Kylian Mbappe. The company did not mention him in the release after the French soccer star was forced to apologize for comments about Mao Zedong two weeks ago that angered China. US-listed shares were down 4% in volatile premarket trading. The stock has fallen nearly 20% so far this year. On now expects fiscal 2026 gross profit margin to be around 67.5%, or about 66%, excluding US tariff refunds, compared with its previous forecast of at least 65%. The Swiss company posted third-quarter sales of 931.4 million Swiss francs ($1.14 billion), compared with analysts' estimates of 929.3 million Swiss francs, according to data compiled by LSEG.
