Chapter 2 · Financial Health
Fast growth
and fat profit.
A rare combo.
A 64% gross margin and surging net income. On isn't buying growth at the expense of profit — it's getting both.
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✦ The bottom line
On's gross profit margin hit 64.2% last quarter — extraordinarily high for a physical-product company — even with new U.S. tariffs biting. Net income jumped 82% to CHF 103.3M, lifting net margin to 12.4%. Profit is growing faster than sales.
↓ the brief below
✦ Teach me
Gross margin
Gross margin is what's left of each sale after the direct cost of making the product — the factory, the materials, the shipping. A higher margin means more money to spend on marketing, stores, and design — or to keep as profit.
Most shoe and apparel makers run gross margins in the 40s or low 50s. On's 64% signals a genuinely premium brand: it sells at full price, rarely discounts, and people pay it.
Wall Street calls this
Gross profit margin
A 64% gross margin is the financial fingerprint of pricing power. It's why On can grow fast and stay highly profitable at the same time — most rivals can't.
Gross profit margin · Q1 2026
Up 430 basis points from 59.9% a year earlier — and that's despite higher U.S. tariffs. Premium pricing plus efficiency, working together.
Source · 6-K · Q1 2026 results press release · Q1 2026 · Filed May 12, 2026