On's Q3 revenue increased by 17.2%, CEO says communicating with multiple parties regarding the Mbappé incident

Swiss sportswear brand On responded for the first time to the controversy sparked by football star Mbappé.

On November 10, On’s Co-CEO Caspar Coppetti said in an interview with Reuters that the company is maintaining communication with its Chinese team, relevant government stakeholders, commercial real estate partners, Mbappé himself and his team, and listening to consumer feedback.

When asked whether the controversy would change On’s marketing strategy in the Chinese market, Coppetti did not give a specific adjustment plan, only noting that the company is currently in a phase of “listening and learning.”

In September this year, On announced it signed Mbappé as a global brand ambassador, marking its official expansion into the football field, with plans to launch its first football products in 2027. However, at the end of October, Mbappé caused controversy due to inappropriate remarks and subsequently issued a public apology. Several Chinese partner brands then announced the termination of collaborations.

On the same day, On disclosed its financial report for the third quarter of 2026. In the three months ending September 30, On achieved revenue of CHF 931 million, an increase of 17.2% year-on-year and 17.8% at constant exchange rates, setting a new quarterly revenue record.

Net profit reached CHF 163 million, a year-on-year increase of 36.9%; the gross profit margin reached 72.6%, also a historical high.

Improvement in gross profit margin was partly due to a one-time U.S. tariff refund of around CHF 52.6 million. Excluding this factor, the gross profit margin stood at 66.9%, still higher than the same period last year.

Regarding full-year performance, On maintained its forecast for revenue growth of just over 20% at constant exchange rates, corresponding to annual revenue of around CHF 3.47 billion to CHF 3.56 billion. Excluding the tariff refund, the company raised its annual gross profit margin guidance from at least 65% to about 66%.

On’s growth structure is undergoing changes, but footwear continues to account for the vast majority of revenue.

Footwear revenue reached CHF 844 million, up 15.4% year-on-year, accounting for about 90.6% of total revenue; apparel and accessories segments grew by 38.7% and 39.2%, respectively.

Within the footwear business, On is advancing both professional running and lifestyle product lines.

In the professional running sector, sales of the Cloudsurfer 3, launched in October, in its first week were more than four times faster than those of the previous generation during the same period.

The company is also accelerating large-scale adoption of its LightSpray upper manufacturing technology, with market demand for the Cloudboom Strike 2 LightSpray version outstripping available supply by six times.

Meanwhile, lifestyle products have become an important direction for On to reach a broader range of consumers.

The Cloudtilt series continues to perform well in sales. The newly launched Cloudtilt Arc in September outperformed the company’s internal expectations in its early stages, with performance in the Asia-Pacific market exceeding the original plan by more than four times.

In October, the company launched new shoes in collaboration with Zendaya, including the Cloudnova Moon Mary Jane, further expanding into everyday footwear scenarios.

Regionally, Asia-Pacific remains On’s fastest-growing market, with quarterly revenue reaching CHF 190 million, a 31.1% year-on-year increase, outpacing the Americas (12.4%) and Europe, Middle East, and Africa (17.9%).

For the Chinese market, management stated that existing directly operated and partner stores are mainly concentrated in first- and second-tier cities, and the company will continue to control the pace of expansion and discerningly select retail partners in the future.

Direct-to-consumer (DTC) business revenue reached CHF 393 million, a year-on-year growth of 25%, with its share of total revenue rising to 42.2%; wholesale grew by 12.2%.

Management admitted that DTC performance this quarter was slightly below internal expectations, due to delays in some new store openings and increased promotional competition from online channels.

Discussing China’s Double 11 shopping festival, management clarified that the company does not wish to increase marketing spend or engage in price competition simply to participate in highly promotion-driven consumption festivals.

Compared to rapid expansion via frequent store openings and discounting, On prefers to leverage direct-to-consumer experiences, selective retail partners, and full-price sales to maintain its premium brand positioning.

However, as scale expands, a slowdown in growth has already been factored into management’s medium-term expectations. The company anticipates that growth in Asia-Pacific will gradually return to the mid- to high-20% range in the future.