Observed Signal · Aug 11, 2026 · Earnings Report · Source: Retail Dive · Impact: 4/5 · Sentiment: Neutral
On misses Q2 revenue; currency change may explain
On reported second-quarter net sales of 850.3 million Swiss francs, a 13.5% year‑over‑year increase (21.6% on a constant currency basis), which missed analysts' expectations for mid‑20s constant‑currency growth. Direct‑to‑consumer (DTC) sales rose 26% while wholesale grew 4.8%; regionally, Asia‑Pacific led with 43.1% growth and the Americas were up 4.5%. The company lowered its full‑year outlook to low‑20% constant‑currency net sales growth and a gross profit margin of at least 65% (down slightly from prior guidance). Analysts cited currency effects and limited visibility in international and wholesale channels as drivers of the disconnect with Street estimates.
Corporate earnings update and guidance revision for a notable D2C brand; analysts flag currency effects that affect reported results and investor expectations.
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Key Takeaways & Evidence Grounding
- On's Q2 net sales were 850.3 million Swiss francs, a 13.5% year‑over‑year increase.
- On reported 21.6% constant currency net sales growth for Q2, below analysts' mid‑20s expectations.
- DTC net sales grew 26% and wholesale sales increased 4.8% in Q2.
- Regional performance: Asia‑Pacific net sales up 43.1%; Americas net sales up 4.5%.
- On lowered its full‑year outlook to low‑20% constant currency sales growth and gross profit margin of at least 65% (prior outlook: at least 23% sales growth and 64.5% gross profit margin).
Connected Companies & Entities
3 Entities mapped“On's second quarter net sales grew 13.5% year over year to 850.3 million Swiss francs (about $1.05 billion at press time) or by 21.6% on a c...”
“On's quarters are hard to call given big pockets of limited visibility, namely around international, wholesale, and the impact of currency, ...”
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On boosts revenue and margins in Q2 2026
Swiss sportswear maker On continued growth in Q2 2026 and improved profitability. Reported revenue rose 13.5% year-on-year to CHF 850.3m (FX-adjusted +21.6%). Direct-to-consumer (DTC) sales increased 26.0% to CHF 388.4m (FX-adjusted +34.3%), reaching a 45.7% share of total sales. Asia-Pacific led regional growth (+43.1% to CHF 170.5m; FX-adjusted +54.7%). Gross profit rose 20.6% to CHF 555.7m and gross margin expanded 3.9 percentage points to 65.4%. Adjusted EBITDA increased 23.5% to CHF 168.1m (margin 19.8%), and net profit was CHF 105m versus a CHF 40.9m loss a year earlier. For the first half, revenue was CHF 1.682bn (up 14.0%; FX-adjusted +24.0%). On raised its full-year gross margin target to at least 65.0% and reiterated an adjusted EBITDA margin guidance of 19.5–20.0%.
Levi's Q3: Wholesale and tariff refunds offset weak DTC
Levi Strauss & Co. reported a challenging third quarter where direct-to-consumer (DTC) sales grew only 2% year-over-year with flat comps, missing expectations and marking the brand's first net revenue miss in two years. Wholesale revenue, however, rose 6%, driven by strength in Europe and Asia, helping overall net revenues grow 4% to $1.6 billion. Profitability was significantly boosted by approximately $80 million in tariff refunds, which contributed 370 basis points to gross margin expansion of 450 basis points to 66.2%. Net income fell nearly 23% to about $169 million. The company plans to reinvest most of the refunds into incremental marketing, supply chain enhancements, and consumer value initiatives. Despite the DTC slump, management noted a rapid recovery in DTC trends, particularly in Europe, as weather normalized.
Richemont Posts Double-Digit Revenue Growth
Swiss luxury group Richemont reported currency-adjusted revenue growth of 11% to €22.4 billion for the 12 months to end-March 2026, driven by a 17% sales increase in the Americas. Annual profit rose about one quarter to €3.48 billion. The company said the conflict in the Gulf region reduced demand and tourism, causing a 3% decline in the Middle East & Africa segment in the three months to end-March. Richemont cited higher gold prices and travel-cost pressures as headwinds, and the group did not provide a formal forecast. Chairman Johann Rupert highlighted continued strength in the US economy. Richemont shares fell roughly 1% on the news, and analysts had expected slightly stronger results.
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