On Holding (ONON) Stock: Why It Fell 8% After Earnings

Quick answer

On Holding traded at $34.39 at 11:50am ET on Nov 10, 2026, down 8.4% from a $37.53 close, after third-quarter results that looked better in the release than they did on the call. Net sales rose 17.2% to a record CHF 931.4 million, in line with the CHF 929.8 million analysts expected, and adjusted earnings of CHF 0.54 a share beat a CHF 0.38 estimate, helped by a one-off CHF 52.6 million U.S. tariff refund, Investing.com reported. The shares rose as high as $39.77 in early premarket trading. During the 8am call, finance chief Frank Sluis said "several key accounts in the Americas took holiday deliveries in the final week of September that had been planned for October," and that direct-to-consumer sales were "slightly below" plan. By 9am the stock was $33.51.

Our view: Bearish through March 3, 2027, around when On is expected to report fourth-quarter results; it reported last year's fourth quarter on Mar 3, 2026. The case for the stock: gross margin excluding the tariff refund was 66.9%, a record, and On raised its full-year margin outlook to about 66% from at least 65% on that basis; management expects fourth-quarter growth to accelerate; and after today's drop the stock gave back the run from $31.94 on Oct 28 to $38.62 on Nov 4. The case against carries more weight. The sales line only matched estimates, and part of it came out of October. The full-year sales outlook did not move, so at spot rates the fourth quarter has to grow between 15.1% and 27.2% from last year's CHF 743.8 million, and reaching the midpoint takes about 21%, faster than the third quarter's 17.2%, with less wholesale business left to ship. The Americas, On's largest region, grew 12.4%, and co-founder Caspar Coppetti said the U.S. wholesale market is as promotional as it was in the second and third quarters and that the lifestyle market is down. We would move off Bearish if fourth-quarter sales come in above CHF 901 million, the midpoint the outlook implies, if Americas growth returns above 15%, or if On raises its sales outlook at any update before the report. This is a view on direction over that window, not a recommendation to trade the stock.

On Holding daily closing price from Sep 25 to Nov 10, 2026, with the Oct 28 low close, the Nov 4 high close and the Nov 10 drop marked

Key takeaways

On Holding traded at $34.39 at 11:50am ET on Nov 10, 2026, down 8.4% from a $37.53 close, after a premarket gain to $39.77 reversed during its 8am earnings call.
Third-quarter net sales rose 17.2% to CHF 931.4 million, in line with the CHF 929.8 million analysts expected, while adjusted earnings of CHF 0.54 a share beat a CHF 0.38 estimate with help from a one-off CHF 52.6 million U.S. tariff refund.
Finance chief Frank Sluis said several key accounts in the Americas took holiday deliveries in the last week of September that had been planned for October, and that direct-to-consumer sales were slightly below plan.
On kept its 2026 sales outlook of low-20% growth at constant currency, or CHF 3.47 billion to CHF 3.56 billion at spot rates, which implies fourth-quarter sales growth of 15.1% to 27.2%.
Our view is Bearish through March 3, 2027, around its fourth-quarter report: part of the third quarter's sales came out of October, the U.S. market stays promotional, and the outlook needs a faster fourth quarter than the third to reach its midpoint.

Table of contents

Nov 10, 2026: a premarket gain reverses on the call
The numbers
The bull case
The risks
What comes next

Nov 10, 2026: a premarket gain reverses on the call

On closed Nov 9 at $37.53. It released results before the open on Nov 10. Premarket trading started at $37.77 at 4am and reached $39.77 around 5am, 6.0% above that close. The call began at 8am, and by 9am the stock had fallen to $33.51. It opened at $34.72, traded between $33.86 and $35.58 in the first five minutes and held near that range all morning. At 11:50am it was $34.39, down 8.4%, on about 10.4 million shares.

What happened:

Sales matched, profit beat. Net sales of CHF 931.4 million compared with an estimate of CHF 929.8 million. Adjusted diluted earnings of CHF 0.54 a share compared with CHF 0.38 expected and CHF 0.43 a year earlier.
The refund flattered the margin. Reported gross margin was 72.6%; without the CHF 52.6 million U.S. tariff refund it was 66.9%, against 65.7% a year earlier.
Shipments came early. Sluis said retailers "had a bit of extra pickups," with holiday deliveries planned for October shipped in late September.
Own channels missed plan. Asked whether direct-to-consumer sales fell below plan, Sluis said "quarter three was slightly below," adding that he would not read it as a trend.

On fell more than other footwear and apparel stocks. From the Nov 9 close to 11:50am ET:

Stock or fund	Nov 9 close	Nov 10, 11:50am	Change
On Holding (ONON)	$37.53	$34.39	-8.4%
Birkenstock (BIRK)	$38.72	$37.14	-4.1%
Lululemon (LULU)	$112.53	$108.23	-3.8%
Nike (NKE)	$39.88	$38.65	-3.1%
Deckers (DECK)	$90.43	$88.83	-1.8%
SPDR S&P Retail (XRT)	$92.78	$92.03	-0.8%

Around 11:50am RSI(14) stood at 50, the shares sat 8.3% above their 50-day average and 5.1% below their 200-day average, 32.6% below their 52-week high of $51.08, and volume was about equal to its 20-day average with more than four hours of trading left.

The numbers

Bar chart of On's net sales growth in the third quarter of 2026 by region: Asia-Pacific 31.1%, Europe, Middle East and Africa 17.9%, Americas 12.4%, total 17.2%

Channels. Direct-to-consumer sales rose 25.0% to CHF 393.3 million, 42.2% of the total. Wholesale rose 12.2% to CHF 538.2 million.
Products. Shoes rose 15.4% to CHF 843.7 million, apparel 38.7% to CHF 69.5 million and accessories 39.2% to CHF 18.1 million.
Profit. Net income rose 36.9% to CHF 162.8 million. Adjusted EBITDA margin was 27.6%, or 21.9% excluding the refund, against 22.6% a year earlier.
Outlook. Sales growth in the low-20% range at constant currency, CHF 3.47 billion to CHF 3.56 billion at spot rates. Gross margin about 66% excluding refunds. Adjusted EBITDA margin 19.5% to 20.0% excluding refunds.

The refund is the kind of item an adjusted EBITDA figure can hide in plain sight, which is why On reported its margins both ways. And a held outlook after a quarter that borrowed from the next one is weaker than it reads.

The bull case

The margin story is real. Even without the refund, gross margin rose 120 basis points from a year earlier, and On says it held full price in a promotional market. Asia-Pacific grew 31.1% and apparel 38.7%. Coppetti said the Cloudsurfer 3 "is the first proof point of our biggest innovation cycle," and On's athletes won in Frankfurt and reached the podium in both New York Marathon races. The average analyst target is $43.43, 26% above the price, and Sluis said fourth-quarter growth should "accelerate" from the third, "predominantly DTC-led." If the holiday season in On's own stores and website runs ahead of plan, the timing shift matters less.

The risks

The pull-forward. Shipments booked in September will not repeat in October, and wholesale growth in the fourth quarter starts from a lower base of open orders.
U.S. demand. Americas growth of 12.4% trails the other regions, and management called the U.S. wholesale market promotional for a third straight quarter.
Currency. Nine-month sales rose 15.1% in francs against 21.8% at constant currency, so a strong franc keeps eating reported growth.
No early 2027 boost. Sluis said he "would not assume" a further acceleration in the first quarter of 2027.

What comes next

The next hard numbers come with the fourth-quarter report, expected in early March 2027. Our explainer on post-earnings drift covers how a stock tends to trade after a report like this one, and our guide to earnings catalysts covers the setup into the next one. For the rest of the session's movers, see today's biggest stock moves.

Frequently asked questions

Why did On Holding stock drop today?

On Holding fell 8.4% to $34.39 at 11:50am ET on Nov 10, 2026. Its third-quarter sales of CHF 931.4 million matched estimates, and the earnings beat leaned on a CHF 52.6 million tariff refund. On the call, finance chief Frank Sluis said some Americas holiday deliveries planned for October shipped in late September and that direct-to-consumer sales came in slightly below plan. The shares had traded as high as $39.77 before the call.

Did On beat earnings?

Yes on profit. Adjusted diluted earnings were CHF 0.54 a share against an estimate of CHF 0.38, and net income rose 36.9% to CHF 162.8 million. Excluding the CHF 52.6 million U.S. tariff refund, gross margin was 66.9% rather than the reported 72.6%. Net sales of CHF 931.4 million were close to the CHF 929.8 million estimate.

What is On's 2026 outlook?

On expects 2026 net sales growth in the low-20% range at constant currency, unchanged, or CHF 3.47 billion to CHF 3.56 billion at current spot rates. It expects a gross margin of about 67.5%, or about 66% excluding tariff refunds, up from at least 65%, and an adjusted EBITDA margin of 19.5% to 20.0% excluding refunds, unchanged.

How fast did On grow in the Americas?

Americas net sales rose 12.4% to CHF 490.1 million in the third quarter, against 17.9% growth in Europe, the Middle East and Africa to CHF 251.4 million and 31.1% in Asia-Pacific to CHF 189.9 million.

What did management say about the fourth quarter?

Frank Sluis said On expects fourth-quarter growth to accelerate from the third quarter, led by its own stores and website, and said he would not assume a further acceleration in the first quarter of 2027. Co-founder Caspar Coppetti said the U.S. wholesale market remains promotional and that the lifestyle market is down.

Sources

Article details

By James Whitfield, Head of Equity Research, Dombey Capital

Published November 10, 2026 · 5 min read · Event-Driven Investing