Swiss Shoe Maker On Launches One Billion Dollar Share Repurchase

2026-09-23 companies

Zurich, Wednesday, 23 September 2026.
Swiss sportswear brand On announced a $1 billion share repurchase program alongside ambitious long-term growth targets, driving its stock price up over 11% on the New York Stock Exchange.

Capital Return and Market Reaction

On Holding AG (NYSE: ONON) shares surged more than 11% on the New York Stock Exchange following the announcement of a new $1 billion share repurchase program [1]. The Zurich-based company confirmed that its board authorized the repurchase of up to $1 billion of its Class A ordinary shares, a program scheduled to run through the end of fiscal 2029 [5]. This aggressive capital return strategy was unveiled during an investor day presentation held on Tuesday, 22 September 2026, at On Labs in Zurich [6]. Prior to this announcement, the stock had declined approximately 34% year-to-date in 2026, making the double-digit rally a significant recovery for investors [1]. The market reaction stood in stark contrast to the minimal movement observed following the company’s recent sponsorship deal with soccer star Kylian Mbappé earlier in the month [4].

Long-Term Financial Ambitions

Alongside the buyback news, management presented updated financial targets extending through 2029, aiming for high-teens constant currency net sales growth [5]. The company projects revenue to reach at least CHF 5.6 billion by 2029, while maintaining a gross profit margin of no less than 65% [6]. Furthermore, On Holding targets an adjusted operating margin (EBITDA) of at least 22% by the end of the period, based on an average annual growth rate of more than 20% in operating profit [1]. Analyst models suggest these targets could result in earnings increasing from a current baseline of CHF 396.2 million by an additional CHF 285.7 million [8]. This projected earnings increase represents a potential growth of 72.11 percent over the current baseline figures [8].

Strategic Drivers and Outlook

For the current fiscal year, the company reiterated its 2026 outlook for low-20% constant currency net sales growth and an adjusted EBITDA margin between 19.5% and 20.0% [5]. Management noted that these figures do not yet account for approximately $65 million in tariff reimbursements expected during the third quarter [1]. The company’s strategy, termed the Premium Playbook, focuses on expansion in Run, Sneaker, and Apparel verticals, alongside entry into Football and Golf markets [6]. Laura Miele was appointed as lead independent director effective 21 September 2026, bringing experience from Electronic Arts to the board [5]. Investors will be watching closely to see if the repurchase plan adds support as the brand continues expanding globally [7].

Sources

Footwear Industry Stock Buyback