Sportswear brand On sees possible boost from lower US tariff rate

By Helen Reid

March 3 (Reuters) - On Holding sees little U.S. tariff rates aft the Supreme Court struck down the government's exigency levies arsenic a imaginable ‌boost for the fast-growing Swiss sportswear brand, CEO Martin Hoffmann said connected Tuesday ‌as it delivered beardown quarterly results.

The company, which sells moving shoes for $150 and up, forecast astatine slightest 23% income ​growth successful 2026 connected a constant-currency ground — moderating from the 30% maturation reported successful 2025, but inactive outpacing bigger rivals Nike and Adidas.

On shares, however, were down 11% successful premarket trading amid broader marketplace declines.

The institution sees yearly nett borderline expanding to astatine slightest 63% from 62.8% ‌in 2025, with the outlook not ⁠yet factoring successful a little U.S. tariff rate.

The U.S., On's biggest market, began collecting a impermanent caller 10% broad tariff connected imports past ⁠week, with plans to assistance it to 15%. Even then, it would stay good beneath the further 20% work imposed past twelvemonth connected countries specified arsenic Vietnam and Indonesia, cardinal sourcing hubs ​for On.

"If ​we spot 15% becoming the caller reality, this ​would beryllium an further upside to ‌the guidance that we gave," Hoffmann told Reuters.

Hoffmann besides said On was among the companies that person filed for tariff refunds and that immoderate proceeds would beryllium reinvested successful the concern alternatively than passed connected to consumers.

The company's fourth-quarter income roseate 22.6% to 743.8 cardinal Swiss francs ($949.69 million), helped by constricted discounting during the vacation season. Analysts' connected mean estimated ‌724.3 cardinal francs, according to information compiled by LSEG.

A ​focus connected affluent shoppers has helped On, portion brands ​targeting lower-income consumers person been burned ​as they chopped spending successful an progressively polarized economy, particularly successful the ‌U.S.

"The beardown merchandise pipeline that we have, ​the innovation that we ​bring to the market, and that premium presumption is truly gathering momentum globally, and is resonating with the lawsuit globally," Hoffmann said, adding that the marque plans 10 ​to 15 store openings this ‌year.

Quarterly adjusted net earlier interest, taxes, depreciation and amortization roseate 31.8% to 131 ​million francs.

($1 = 0.7832 Swiss francs)

(Reporting by Neil J Kanatt successful Bengaluru and ​Helen Reid successful Paris; Editing by Shilpi Majumdar)