On Holding, the Zurich-based maker of running shoes and sportswear, said on Tuesday that third-quarter net sales rose 17.2% from a year earlier to a record CHF 931.4 million, with Asia-Pacific the fastest-growing region at 31.1%. Its New York-listed shares still closed 7.46% lower at $34.73, according to Nasdaq market data.

For investors in Asia, the quarter shows how much of On's growth now runs through the region, and how that growth is cooling from a very fast pace. Asia-Pacific sales reached CHF 189.9 million, about one-fifth of the group total, up from CHF 144.9 million a year earlier. At constant currency the region grew 31.9%, well below the 54.7% recorded in the second quarter, when the company credited what it called standout momentum in Japan, South Korea and Greater China.

On Holding's Asia-Pacific growth slows from first half

The third-quarter release did not break out individual Asian markets. Over the first nine months of 2026, Asia-Pacific sales rose 39.0% to CHF 534.5 million, or 48.2% at constant currency, faster than any other region. Europe, the Middle East and Africa grew 17.9% in the quarter to CHF 251.4 million, passing CHF 250 million for the first time. The Americas, still On's biggest market, rose 12.4% to CHF 490.1 million.

The slowdown comes as China's biggest local brands struggle at home: Anta and Li Ning reported falling third-quarter sales as sportswear demand in China cooled.

On's own stores and website did much of the work. Direct-to-consumer sales jumped 25.0% to CHF 393.3 million, lifting that channel to 42.2% of the total. Wholesale sales rose 12.2% to CHF 538.2 million. By product, shoes grew 15.4% to CHF 843.7 million, while apparel rose 38.7% to CHF 69.5 million.

Margins lifted by U.S. tariff refunds

Profit rose faster than sales. Gross margin reached 72.6%, up from 65.7%, helped by CHF 52.6 million of U.S. tariff refunds booked in the quarter. Excluding those refunds the margin was 66.9%, which the company said was still the highest in its history. Net income climbed 36.9% to CHF 162.8 million, and adjusted EBITDA rose 42.7% to CHF 256.8 million.

Chief Financial Officer Frank Sluis said selling at full price, a larger share of sales through On's own channels and the benefits of scale drove the record margin. Co-founder and co-CEO Caspar Coppetti said the company had held full prices "in a promotional market."

Diluted earnings per Class A share rose to CHF 0.48 from CHF 0.36. The adjusted EBITDA margin was 27.6%, or 21.9% without the tariff refunds, against 22.6% a year earlier. For the first nine months, net income nearly tripled to CHF 371.0 million from CHF 134.6 million, when the prior-year period had been weighed down by a large foreign exchange loss.

Asia-Pacific has become a steady contributor to the bigger picture. In August the company said the region had again delivered more than 20% of global sales in the second quarter, and its share held at about 20% in the third. Accessories, a small line, grew 39.2% to CHF 18.1 million in the quarter.

Cash and equivalents stood at CHF 1.34 billion at the end of September, up 31.3% from the end of 2025.

Full-year sales forecast unchanged

On kept its forecast for 2026 net sales growth in the low-20% range at constant currency, which it said implies CHF 3.47 billion to CHF 3.56 billion at current exchange rates. On a basis that leaves out the tariff refunds, it raised its gross margin outlook to about 66% from at least 65% and kept its adjusted EBITDA margin range of 19.5% to 20.0%. Including the refunds, it expects a gross margin of about 67.5% and an adjusted EBITDA margin of 21.0% to 21.5%.

The company said it plans for sales growth to speed up in the fourth quarter as holiday campaigns and new products reach shoppers. Nine-month sales rose 21.8% at constant currency, but only 15.1% in Swiss francs, as a strong franc cut the value of sales booked in other currencies.

The results are the first since On's investor day on Sept. 22, when it set a goal of high-teens annual sales growth at constant currency through 2029 and outlined moves into football and golf. The fourth-quarter figures, which will show whether the promised acceleration arrives, are due in early 2027; On reported its 2025 full-year results on March 3 this year.