Swiss sneaker maker’s guidance disappoints

Swiss sports shoe manufacturer Ali Holding It said Tuesday it expects its sales growth to slow more than expected this year, sending shares down 14% in premarket trading.

The maker of Cloudmonster expects net sales for 2026 to grow at least 23% in constant currencies, implying at least 3.44 billion Swiss francs ($4.38 billion) at current spot prices. While this would be a faster pace of growth than most of its rivals, it represents a slowdown from the 35.6% constant currency growth it saw in fiscal 2025 and was CHF3.7 billion below the analyst consensus.

In an interview with CNBC, co-founder and CEO David Aleman said the company is taking a “strategic” approach to its growth in 2026 and its guidance is based on the “incredible demand” it expects to see in the key Americas market.

“We don’t want to build a brand just for the coming years,” Aleman said. “We’re building a brand for the next decade, so we’re being strategic in how we penetrate channels, wholesale, how many stores we launch, and being strategic [on] What are the perks that we pay for that we could potentially back away from a little bit. So this is a very strategic, distinct game.”

During On’s holiday quarter, the company also saw mixed results. The company’s revenue and footwear sales in its wholesale channels and EMEA geographies were higher than expected, as were its margins, according to StreetAccount. During the quarter, On’s gross margin was 63.9%, above expectations of 62.5%, while adjusted EBITDA margin grew to 17.6%, well above expectations of 15.9%, according to StreetAccount.

However, sales performance in certain categories and geographies was worse than expected. Apparel and accessories sales came in below estimates, along with revenue in its direct channels and key geographies of the Americas and Asia Pacific.

Throughout the business, On exceeded expectations at the top and bottom line. Here’s how the fast-growing sneaker brand performed compared to what Wall Street expected, based on a survey of analysts conducted by LSEG:

• EPS: 25 cents was revised versus 20 cents expected
• profit: 743.8 million francs, compared to the expected 723.5 million francs

On’s net income for the three-month period ended December 31 was 69.1 million francs, or 21 cents per share, compared with 89.5 million francs, or 28 cents per share, a year ago.

Sales rose to 743.8 million francs, up 22.6% from 606.6 million francs the previous year.

On is now in its third and final year Sales doubling strategy to 3.55 billion francs and increase its EBITDA margin to at least 18% by 2026 in an effort to become “the most premium global sportswear brand”.

The company, which went public in 2021 on the New York Stock Exchange, has taken market share from legacy competitors such as Nike and Adidas By attracting a new generation of athletes by focusing on innovative products and performance footwear and apparel.

The company is winning over the “ageless athlete” and capturing market share in a variety of categories, including tennis and running, Aleman said.

“This shift is going through the whole of society. So we’re seeing a broad type of consumer who wants to invest, and that’s going across very different age groups,” Aleman said.

While On is gaining customers from a wide range of communities, Allemann said it is seeing the most success with shoppers ages 18 to 34, who first discover the company through its clothing, not shoes, and tend to have larger baskets. This shift represents a huge opportunity for On as it grows the apparel side of its business, which will ultimately allow it to reach a broader audience, especially among women, and better compete with Nike.

“We are witnessing a fundamental societal shift, as people globally replace traditional markers of status with a commitment to health, longevity and performance,” Aleman said.

Profitability also reached new highs over the full year, the company said.

In 2025, adjusted EBITDA increased by 46.3% to 567 million francs, reflecting a margin of 18.8%. The company said that this rhythm reflects operational efficiencies and the strength of brand positioning.

Although the market performed slightly below expectations, the Asia-Pacific region was still a standout in the fourth quarter, with sales growing by 85.1% in constant currencies. The Americas and Europe, Middle East and Africa grew by 21.3% and 27.5%, respectively, in the three months ended December 31.

“Our second store in Tokyo has long lines. Shanghai has queues. So I think we are very popular with the Asian consumer,” Aleman said. He added: “We are really forging our own path. We don’t often look at the other side. This applies not only to Asia, but also to the whole world.”

On’s success in the Asia-Pacific region, especially in China, comes at a time when Nike is struggling to retain market share there. During the last quarter, Sales decreased 17%.

In the previously mentioned quarter, On surprised investors to the upside The guidance was raised for the third time Respectively while exceeding expectations on both the top and bottom lines, sending the stock up 18%. It also said it would not offer any offers during the holiday shopping season because it aims to be a premium brand.

Shares remain largely flat year to date, with some analysts suggesting challenges will escalate in 2026, and the stock’s valuation does not fully reflect these risks.

“In a tougher pricing environment, and as competition intensifies, setting premiums alone may not be enough to sustain price-led growth without risking demand and/or increased promotional activity,” Jefferies analyst Randall Konik, who rates underperforming stocks, said in late February.

Whether On can continue to grow depends in part on its ability to attract shoppers throughout the Americas, not just in major cities like Los Angeles and New York City. Aleman said the company is looking to attract all types of athletes, regardless of where they live, although planned store openings are currently concentrated in major cities like Boston, London and Stockholm.

Correction: Adjusted EBITDA margin was 17.6% in the fourth quarter. An earlier version misstated this number.