Core Viewpoint - On Holding AG is experiencing growth driven by strong footwear franchises, but potential pressures from tariffs are anticipated in 2026 [1][4]. Group 1: Growth and Market Performance - On is expected to report its fourth quarter and full-year earnings results soon, with analysts believing it will remain a compelling growth story due to increasing brand awareness globally [2]. - Online search trends for On have seen over 30% growth in the U.S. and over 75% growth globally, with social media followers increasing nearly 30% year-over-year [2]. - Most of On's growth has been primarily from North America, but Asia and EMEA are emerging markets expected to contribute more to overall growth this year, with Asia now accounting for a "high-teens percent" of sales [3]. Group 2: Regional Developments - EMEA has experienced a re-acceleration in growth, with four consecutive quarters of growth exceeding 33%, outpacing the U.S. growth of 20% to 25% [3]. - The cleanup of distribution channels in Europe, including exiting family footwear channels, has positioned On as a premium athletic brand, expanding through key retailers like Foot Locker and JD Sports [3]. Group 3: Supply Chain and Financial Outlook - The impact of tariffs is expected to be fully felt in the first quarter of fiscal year 2026, with a planned gross margin decline anticipated for that year [4]. - Although On sources almost none of its products from China, it is affected by tariffs on Vietnamese imports, and there may be foreign exchange headwinds due to a stronger Swiss franc [4]. Group 4: Product Introductions and Expansion Plans - On has a strong lineup of footwear product introductions planned for 2026, including Cloudmonster 3 and Cloudrunner 3 in the first quarter, and Cloudsurfer 3 in the third quarter [5]. - The company plans to open between 20 to 25 new stores and continue expanding in underpenetrated markets such as Asia Pacific, parts of Europe, and Latin and South America [5].