ONON's 34% Sales Growth Outlook Points to a Stronger Path in 2026

On Holding AG’s ONON strong sales growth forecast for 2025 has laid the groundwork for a more robust outlook in 2026. This provider of athletic footwear and apparel has raised its full-year 2025 guidance, driven by increased demand across both channels and major regions. It now expects net sales to grow 34% year over year on a constant-currency basis, up from the earlier estimate of 31%. The outlook suggests reported net sales of CHF 2.98 billion compared to the previous projection of CHF 2.91 billion.

The company previously announced its goal to double net sales by 2026, which implied a 26% constant currency CAGR over the three-year period from 2023 to 2026. Management states it is on track, having achieved more than 33% constant currency growth in each of the first two years. ONON now projects a minimum 30% three-year constant currency CAGR from 2023 to 2026. The current outlook also points to at least 23% growth in 2026.

The updated outlook affirms that apparel, direct-to-consumer sales and Asia Pacific markets are contributing to broader growth. Additionally, product innovation continues to be a key driver of this acceleration. The path to 2026 is already being paved by the commercial success of existing franchises like the Cloudsurfer and anticipation for new models. Specifically, Cloudrunner 3 and Cloudmonster 3 are scheduled for launch in the first quarter of 2026 and are supported by a strong order book.

In the second half of 2026, the launch of the new Cloudrunner Max will showcase significant advancements in engineering and foam technology. This steady stream of innovative technologies ensures ON Holding is well-positioned for sustained success.

What the Latest Metrics Say About ON Holding

ON Holding, which competes with Deckers Outdoor Corporation DECK and Wolverine World Wide, Inc. WWW, has seen its shares rally 37.7% in the past month compared with the industry’s rise of 17.6%. Shares of Deckers and Wolverine have jumped 24.9% and 6.6%, respectively, in the aforementioned period.
 

From a valuation standpoint, ON Holding trades at a forward price-to-earnings (P/E) ratio of 28.85, higher than the industry’s 18.04. ONON carries a Value Score of F. ON Holding is trading at a premium to Deckers (with a forward 12-month P/E ratio of 14.93) and Dollar General (12.84). 
 

The Zacks Consensus Estimate for ON Holding’s current financial-year sales implies year-over-year growth of 41.2%, while the same for earnings per share suggests a decline of 12.7%.
 

ON Holding currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research