BY COMFORT OGBONNA
Swiss sportswear company On said on Tuesday that lower U.S. tariff rates following a Supreme Court ruling could provide an additional lift to its already strong growth, CEO Martin Hoffmann said as the brand reported robust quarterly results.
On, known for its premium running shoes priced at $150 and above, expects at least 23% sales growth in 2026 on a constant-currency basis. This represents a moderation from the 30% growth reported in 2025 but still outpaces larger competitors such as Nike and Adidas. The company also anticipates annual profit margins rising to at least 63% from 62.8% in 2025, with this forecast not yet factoring in potential tariff reductions.
The U.S., On’s largest market, began collecting a temporary 10% tariff on imports last week, with plans to raise it to 15%. This remains well below the 20% duty imposed last year on sourcing hubs including Vietnam and Indonesia. Hoffmann said, “If we see 15% becoming the new reality, this would be an additional upside to the guidance that we gave.”
On’s fourth-quarter sales rose 22.6% to 743.8 million Swiss francs ($949.7 million), exceeding analysts’ expectations of 724.3 million francs, according to LSEG data. The company benefited from limited discounting during the holiday season, while its focus on affluent consumers shielded it from spending cuts affecting brands targeting lower-income shoppers amid a polarized economy, particularly in the U.S.
“The strong product pipeline that we have, the innovation that we bring to the market, and that premium position is really building momentum globally, and is resonating with customers worldwide,” Hoffmann said. He added that On plans to open 10 to 15 new stores this year to expand its retail presence.
Quarterly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 31.8% to 131 million francs. Hoffmann also noted that On has applied for tariff refunds and plans to reinvest any proceeds into the business rather than passing them on to consumers, further strengthening the company’s growth trajectory.
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