Core Insights - On Holding AG reported record results for 2025, achieving over CHF 3 billion in annual net sales for the first time, driven by premium positioning and disciplined full-price selling [2][5] - The company expects at least 23% net sales growth at constant currency for 2026, with a gross margin target of at least 63% and an adjusted EBITDA margin of 18.5% to 19% [4][17] Financial Performance - For Q4, net sales reached CHF 743.8 million, a 22.6% increase year-over-year on a reported basis and 30.6% at constant currency, exceeding previous guidance [1] - Full-year 2025 results included a gross profit margin of 62.8% and an adjusted EBITDA margin of 18.8%, with operating cash flow of CHF 359.5 million and over CHF 1 billion in cash at year-end [1][5] Regional Growth - APAC led growth in Q4 with net sales of CHF 126.5 million, increasing 70.8% reported and 85.1% at constant currency, supported by strong performance during key shopping events [10] - The Americas reported Q4 net sales of CHF 434.3 million, up 12.8% reported and 21.3% at constant currency, with nearly 50% of sales driven by direct-to-consumer (DTC) channels [7] Product and Innovation - The company is focusing on product innovation, including the upcoming launch of the Cloudsurfer 3 in H2 2026, which features new foam technology [11] - On's apparel business grew 76% in 2025 at constant currency, with apparel and accessories now contributing 15% of total retail net sales [14] Manufacturing and Sustainability - On opened a LightSpray manufacturing facility in Busan, South Korea, increasing production capacity by 30 times compared to 2025, while significantly reducing CO₂ emissions [12] - The new manufacturing approach streamlines production, reducing assembly steps from 200 to 1 [12] Strategic Outlook - The company anticipates that DTC sales will outpace wholesale growth in 2026, with apparel expected to significantly exceed overall growth [18] - On is planning a future investor day in the first quarter of next year to align with the incoming CFO [19]