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(Sharecast News) - Switzerland's On Holding unveiled plans to return up to $1bn to investors on Tuesday, sending shares in the sportswear manufacturer sharply higher.
Updating Wall Street at an investor day, the US-listed company said that in light of its strong balance sheet and "highly cash generative" nature of its growth, it intended to repurchase up to $1bn of its class A ordinary shares by the end of December 2029.
It also confirmed its outlook for the current year, for constant currency net sales growth in the low 20% range, a gross profit margin of at least 65% and an adjusted earnings before interest, tax, depreciation and amortisation margin of between 19.5% and 20%.
For the current third quarter, it said sales growth was expected to be around 17%, with tariff refunds likely to come in at around 53m Swiss francs (£48m). "This reflects the disciplined wholesale sell-in execution On introduced in context of its second-quarter results as well as the continued strong momentum in its [direct to consumer] channel," ON noted.
As at 1330 GMT, On's shares had put on 8% in pre-market trading.
Caspar Coppetti, founder and co-chief executive, said: "We are on track to significantly over-achieve our targets given at the last investor day, in 2023. For the period through 2029, we are committing to premium as our north star, staying focused on the long term and executing on each turn of the On premium playbook."
Coppetti founded ON 16 years ago with fellow co-chief executive, David Allemann.
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