Shares of On Holding surged after the Swiss footwear and sports-apparel company set new midterm financial targets and reiterated its fiscal 2026 outlook at its investor day on Tuesday.

The company expects annual sales growth to reach the "high-teens," targeting for at least 5.6 billion Swiss francs, or approximately $7 billion, by 2029. Management also reaffirmed its fiscal 2026 outlook and confirmed that the company is on track to beat its previous multi-year goals set in 2023.

On Holding shares jumped 13% to $30.84. The stock was on pace for its best single-day gain since Nov. 12, 2025, when shares rose 18%, according to Dow Jones Market Data.

Management attributed the new financial targets to the success of its Premium Playbook. That's the company's strategy to keep its brand high-end, full-price, and highly profitable rather than making cheap gear and chasing mass-market sales.

For its fiscal 2026 outlook, On Holding anticipates sales will grow by 20% to 23% and aims to keep at least 65% of its revenue as gross profit. The company also expects its margin for adjusted earnings before interest, taxes, depreciation, and amortization to range from 19.5% to 20%. Management noted that while it expects to receive a tariff refund of $65 million in the fiscal third quarter, its guidance excludes that reimbursement.

The company outlined other updates to its business strategy, including targeting younger, active consumers who incorporate sportswear into their daily wardrobe.

On Holding also announced that it will repurchase up to $1 billion in Class A ordinary shares by the end of 2029, marking another catalyst for the stock's jump Tuesday.

In its fiscal third quarter ending Sept. 30, On Holding expects net sales to grow around 17%. Management noted that intentionally restricting wholesale inventory to protect its brand and prevent price cuts-a strategy it introduced in the fiscal second quarter-could make wholesale growth appear lower.

On Holding's initial products targeted everyday joggers, tennis players, and other fitness enthusiasts, and it is now expanding into other sports, including soccer and golf. Last Friday, On Holding signed soccer icon Kylian Mbappé, of Real Madrid and the French national team, as a new ambassador, marking On Holding's first foray into the soccer market.