On Holding's Robust APAC Performance Strengthens Its Global Footprint
On Holding AG’s ONON Asia-Pacific (APAC) business emerged as its fastest-growing region in second-quarter 2026, strengthening the premium sportswear company’s global diversification. APAC net sales surged 43.1% year over year to CHF 170.5 million and climbed 54.7% on a constant-currency basis, comfortably outpacing companywide growth of 13.5% and 21.6%, respectively.
APAC accounted for 20% of quarterly net sales, up from 15.9% a year earlier. By comparison, the Americas and Europe, the Middle East and Africa delivered constant-currency growth of 13% and 20.5%, respectively. During the first half, APAC revenues advanced 43.7% to CHF 344.5 million or 58.1% at constant currency, lifting the region’s sales contribution to 20.5% from 16.2%.
Momentum remained broad-based across Japan, South Korea and Greater China. Greater China exceeded management’s expectations across every channel, with Tmall performing strongly despite On Holding’s decision to avoid promotional activity. Its first Macau store delivered above-average conversion, while two Tokyo locations continued to excel without signs of cannibalization, supporting the case for further premium retail expansion.
Strong direct-to-consumer (DTC) momentum enhances the quality of this regional growth. Companywide DTC sales rose 34.3% at constant currency to CHF 388.4 million and reached a second-quarter record of 45.7% of total sales. A favorable channel mix, full-price discipline and operational efficiencies helped On Holding expand its gross margin to 65.4% and adjusted EBITDA margin to 19.8%.
APAC’s growing scale reduces On Holding’s reliance on the Americas while providing a stronger platform for footwear, apparel and future product launches. Management expects 2026 constant-currency sales growth in the low-20% range, a gross margin of at least 65% and an adjusted EBITDA margin of 19.5-20%. Currency volatility, promotional pressure and controlled wholesale sell-in remain risks, but sustained APAC demand reinforces On Holding’s global growth profile.
DECK & WWW’s Global Momentum vs. ONON
Deckers Outdoor Corporation DECK maintained solid global momentum in first-quarter fiscal 2027, with revenues exceeding $1 billion. International sales rose 8.4% to $502.1 million, outperforming domestic growth of 3.2%. HOKA recorded robust international DTC growth across Europe, China and Japan. UGG’s international growth was led by Asia and effective mono-brand retail execution. Deckers achieved 13% companywide DTC growth, reflecting healthy full-price demand. This broad-based strength positions Deckers for faster growth in the second half.
Wolverine World Wide WWW delivered solid global momentum in second-quarter 2026, with revenues rising 6.8% to $506.4 million. International revenues increased 10.9% to $277.2 million, outpacing companywide growth and accounting for nearly 55% of sales. Merrell and Saucony recorded respective revenue growth of 11.1% and 9.9%, supported by international wholesale strength. Saucony gained traction across Europe, China and Japan, while Merrell advanced in Europe and key APAC markets. Wolverine achieved double-digit international partner growth for Sweaty Betty across Europe and APAC. This broad-based progress strengthens Wolverine’s global platform and supports its upgraded fiscal 2026 outlook.
ONON’s Price Performance, Valuation & Estimates
On Holding’s shares have lost 24.6% over the past three months compared with the industry’s 9.6% decline.
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From a valuation standpoint, ONON trades at a trailing price-to-sales ratio of 2.08, above the industry’s average of 1.35.
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The Zacks Consensus Estimate for ONON’s fiscal 2026 earnings implies year-over-year growth of 78.4%, whereas the same for fiscal 2027 indicates an uptick of 16.1%. Estimates for fiscal 2026 have been revised downward by 4 cents, while those for fiscal 2027 have been revised downward by 15 cents over the past 30 days.
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On Holding currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
