Zendaya Helps Sportswear Maker On's Asia Growth Soar
By Reuters | 12 May, 2026

With the Euphoria and Dune star as brand ambassador, the Swiss company targets younger female consumers, enjoying a 61.4% sales growth as it expands in China and South Korea.

FILE PHOTO: Cast member Zendaya attends a premiere for the television series "Euphoria" in Los Angeles, California, U.S., April 7, 2026. REUTERS/Mario Anzuoni/File Photo

Sportswear brand On raised its profit margin forecast on Tuesday after strong first-quarter sales, as the Swiss company continues to gain ground in the sneaker and running shoe market long dominated by Nike and Adidas.

With Euphoria and Dune star Zendaya as a brand ambassador, co-CEO Caspar Coppetti said On is targeting younger, female consumers, adding that a clothing range launched with the 29-year-old actor is performing well.

"In terms of the long-term growth, what we're trying to do with apparel or on the sneaker side, we see early very encouraging signs from that," Coppetti told Reuters.

First-quarter sales grew 26.4% to 831.9 million Swiss francs ($1.07 billion) in currency-adjusted terms, beating analysts' average forecast of 822.5 million francs in LSEG-compiled data.

On now expects an operating profit margin of between 19.5% and 20% for 2026, up from 18.5% to 19% previously, and a gross profit margin of at least 64.5%. It maintained its target of at least 23% sales growth this year.

On was managing inflationary costs "very well" and could stand to benefit further from U.S. tariff refunds, said Rick Patel, analyst at Raymond James.

U.S.-listed On shares reversed premarket gains to fall about 4% in early trading as analysts highlighted a slowing rate of growth in the United States.

Sales in the Americas - accounting for more than half of On's revenue - rose 17.1% in the quarter, compared with a 28.6% gain a year ago.

Asia-Pacific was the strongest region, with 61.4% sales growth, as On expands in China and South Korea.

Jefferies analysts said On's management is emphasising growth in Asia, but warned a slowing growth rate in the U.S. risks ending its margin outperformance in the longer term.

STRONG LAUNCHES BOOST MARGINS

Coppetti said profitability was helped by successful new launches, with Cloudtilt sneakers - retailing at between 170 euros and 190 euros - the best-selling shoe across Foot Locker Europe in March. On's operating profit margin rose to 21% in the first quarter, from 16.5% a year ago.

On has changed its senior leadership, with co-founders David Allemann and Caspar Coppetti taking over as joint CEOs on May 1, when Frank Sluis, previously at supermarket group Ahold Delhaize, also joined as chief financial officer.

On's share price is near its lowest levels in two years, having fallen more than 20% since the start of 2026 as the energy price shock triggered by the Iran war dents consumer confidence in the U.S. and Europe.

($1 = 0.7797 Swiss francs)

(Reporting by Helen Reid in London and Juveria Tabassum in Bengaluru, Editing by Louise Heavens and Alexander Smith)