On Holding AG (NYSE:ONON) stock rose in premarket trading Tuesday after the Swiss sportswear company unveiled new 2029 financial targets and authorized a $1 billion share repurchase program.
The company expects net sales to reach at least 5.6 billion Swiss francs, or nearly $7 billion at current exchange rates, by 2029. It is targeting a high-teens constant-currency sales compound annual growth rate from 2026 through 2029.
On Targets Higher Margins
On expects to maintain a gross profit margin of at least 65% over the period. It also aims for an adjusted EBITDA margin of at least 22% by 2029.
That would translate into an adjusted EBITDA CAGR of more than 20% from 2026 through 2029.
The company expects its running, sneaker and apparel businesses to drive much of the growth. It also plans to expand into football and golf.
David Allemann, founder and co-CEO of On, said the company aims to combine performance innovation with premium design as it expands globally.
He said On’s Premium Playbook is designed to connect product development at its Zurich labs with consumers who increasingly view sportswear as part of their identity and lifestyle.
Caspar Coppetti, founder and co-CEO, said On is on track to exceed the targets outlined at its 2023 Investor Day significantly. Through 2029, the company plans to maintain its premium positioning while pursuing both sales growth and margin expansion.
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$1 Billion Share Buyback
On’s board authorized the company’s first share repurchase program. The company can buy back up to $1 billion of Class A ordinary shares through the end of 2029.
Meanwhile, the company reiterated its full-year 2026 outlook. It expects constant-currency net sales growth in the low-20% range, a gross margin of at least 65% and an adjusted EBITDA margin of 19.5% to 20%.
For the third quarter, On expects constant-currency sales growth of about 17%.
Price Action
ONON Price Action: On Holding shares were up 5.86% at $28.92 during premarket trading on Tuesday, according to Benzinga Pro data.
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