On Holding shares fell as much as 22% in after-hours trading after the Swiss sportswear brand reported second-quarter 2026 net sales of 850 million Swiss francs, up 13.5% year over year, or 21.6% on a constant-currency basis, but below the roughly 878 million franc analyst consensus. Adjusted earnings per share of 0.35 francs beat expectations, while gross margin rose to 65.4% and adjusted EBITDA reached 168 million francs. The company said it intentionally limited some wholesale shipments to keep channel inventory under control, protect full-price positioning and prioritize higher-margin direct-to-consumer sales, even as a Zendaya collaboration and a Spike Jonze-directed campaign gained traction. Wholesale sales rose 4.8%, or 12.7% on a constant-currency basis, down from 25.1% constant-currency growth in the prior quarter, while direct-to-consumer revenue climbed 26% to 388 million francs and Asia-Pacific led regional growth. On lowered its full-year constant-currency sales growth forecast to the low-20% range from at least 23%, while raising its gross margin outlook to at least 65% and keeping its adjusted EBITDA margin target unchanged.