On Holding Upholds Premium Pricing Strategy Despite Weak Wholesale Sales
What happened
On Holding reported weaker wholesale demand while direct-to-consumer sales grew double digits, maintaining its no-discount pricing strategy.
The Context
- Brand Integrity Focus: On Holding prioritizes brand integrity over volume, resisting price cuts despite a challenging retail environment.
- Consumer Spending Pressures: U.S. consumer spending is constrained by high debt levels, affecting discretionary purchases like athletic footwear.
- Direct-to-Consumer Growth: The company saw double-digit growth in direct sales, highlighting a shift in consumer buying behavior.
The Number
This year-over-year Q2 2026 net sales growth reflects a slowdown amid wholesale softness, signaling potential challenges for premium brands.
Takeaway
Expect On Holding to continue its disciplined pricing strategy while navigating a cautious consumer landscape.
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