On Holding stock ONON rose 8% on Tuesday after the Swiss sportswear company authorised its first share buyback, worth up to $1 billion through the end of 2029, and unveiled long-term financial targets.
The company, which has seen its stock fall about 40% so far this year, is targeting growth across footwear, apparel and new sports categories as it seeks to expand beyond its core running business.
On Holding sets 2029 financial targets
On Holding outlined its financial targets through 2029 at its investor day, including high-teens annual constant-currency sales growth.
The company expects to generate at least 65% gross profit margins and an adjusted EBITDA margin above 22% through 2029.
It is targeting 2029 net sales of at least 5.6 billion Swiss francs, or about $6.83 billion, compared with 3.01 billion Swiss francs in the previous year.
For 2026, On reiterated its forecast for low-20% constant-currency sales growth, a gross margin of at least 65% and an adjusted EBITDA margin between 19.5% and 20%.
The company’s 2026 annual forecast excludes the benefit from tariff refunds of up to 53 million Swiss francs, or about $65 million, expected in the current quarter.
On said it had received about 28 million Swiss francs in refund proceeds as of mid-August.
On also expects third-quarter constant-currency revenue growth of about 17%.
$1 billion buyback and new sports categories
The share repurchase programme represents a new capital-return initiative for On.
The company authorised up to $1 billion in buybacks through 2029.
Morningstar analyst David Swartz said the targets were aggressive but noted that On’s management sounded confident.
He also said he had expected buybacks to begin in 2027 and at a smaller scale.
Jefferies analyst Randal Konik took a more cautious view, saying the firm would prefer a more achievable target.
On is also expanding its product strategy into new sports.
The company plans to enter soccer and recently signed French football star Kylian Mbappe as a global ambassador.
Football and golf have been identified as new near-term growth pillars alongside On’s existing Run, Sneaker and Apparel categories.
The company has been dealing with slower growth, particularly in the Americas, where second-quarter net sales came in below estimates.
Analysts maintain bullish ratings
Several analysts maintained positive ratings following On’s investor day.
Stifel and Goldman Sachs reiterated Buy ratings with price targets of $41 and $42, respectively, citing the credibility of the company’s new financial framework.
Morgan Stanley also maintained a Buy rating, with a $39 price target.
The company also announced a governance change, appointing Laura Miele as lead independent director effective September 21.
Miele has served on On’s board since 2024 and is president of enterprise development at Electronic Arts.
On’s new targets and buyback come as the company seeks to strengthen growth while maintaining its premium positioning.
Its plan to expand into soccer, supported by the Mbappe partnership, adds another potential growth area as it competes with larger sportswear brands.
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