any’s history. Net income nearly doubled to CHF 103.3 million. “Since our IPO nearly five years ago, we have more than quadrupled our net sales, strengthened our premium positioning and built a financial profile that reflects the incredible ambition of the brand,” said Martin Hoffmann, outgoing CEO and CFO of On.  “The results we present today demonstrate our unique ability to scale rapidly while expanding our profitability.” The geography of growth The Americas, still the company’s largest region at CHF 450.7 million in net sales, grew 17.1 per cent on a constant currency basis, with reported growth of just 3.1 per cent owing to significant Swiss franc strength against the dollar. Meanwhile, Asia-Pacific surpassed 20 per cent of global net sales for the first time, reaching CHF 174 million, up 61.4 per cent on a constant-currency basis. Greater China grew well above the regional average, and South Korea was exceptional, with net sales more than tripling year over year. In Seoul, On’s new standalone store in the affluent Hannam district is, by the company’s own account, performing significantly ahead of expectations. EMEA delivered its sixth consecutive quarter of more than 25 per cent constant currency growth, with the UK showing particular momentum.  Hoffmann said this regional performance was “even more impressive considering the current geopolitical situation in the Middle East”.  The geographic diversification is also happening simultaneously with category diversification. On’s phrase for expanding from footwear into full-wardrobe sportswear is showing real commercial traction. Apparel, still a small portion of the business at CHF 55.3 million, grew 57.5 per cent on a constant currency basis and crossed 10 per cent of direct-to-consumer sales for the first time. Accessories, at CHF12.9 million, grew 86.6 per cent in constant currency terms.  Leadership change  Hoffmann, who served as both CEO and CFO since 2020 and steered On through its New York Stock Exchange listing, stepped back to an advisory role. David Allemann and Coppetti, two of On’s three co-founders, assume co-CEO positions, while Frank Sluis, only two weeks into the CFO role when these results were announced, takes charge of the finances. Hoffmann’s parting summary was, by the standards of corporate communication, unusually candid about what On has actually built: net sales have more than quadrupled since the IPO, from CHF 725 million in 2021 to above CHF 3 billion last year.  “In some segments of the premium sportswear market, we have already proven to be amongst the top three brands, but still have room to grow from a large base. In other market segments, we have just planted the seeds for massive growth in the near future.” The guidance  On reiterated its full-year constant currency net sales growth guidance of at least 23 per cent, which at current exchange rates implies reported net sales of at least CHF 3.51 billion. More significantly, it raised its gross margin guidance to at least 64.5 per cent – materially ahead of 2025, even with Vietnam tariffs embedded in the outlook – and lifted its adjusted EBITDA margin range to 19.5 – 20 per cent. The company was direct about its tariff assumptions: the guidance embeds a 20% incremental tariff on Vietnam-origin imports and excludes any potential IEEPA refunds. That conservatism, alongside the raised profitability outlook, gives the guidance more credibility than it might otherwise carry, given the macroeconomic uncertainty swirling around consumer discretionary spending. Coppetti closed the earnings call with a line that captures On’s current posture better than any financial summary.  “We are not pursuing growth at any cost. We are building premium, high-quality growth rooted in brand desirability, product innovation, channel discipline, and long-term value creation.” Further reading: How Coach rebuilt its cool and why the numbers prove it’s working