New York-listed Swiss sneaker business On is on the rise.
Her signature cratered sneakers have become a favorite of runners around the world, even though they’ve been around for less years than some of their peers. The timing couldn’t have been better as more people did it. turned to running as their form of exercise of choice in the wake of the COVID-19 pandemic—a trend that On is cashing in on.
The company, backed by tennis legend Roger Federer, reported first-quarter sales growth of 29% year-on-year in constant currency at 508 million Swiss francs ($560 million). on Tuesdaysurpassing the half-billion mark for the first time.
Direct-to-consumer sales, which reach customers directly through On’s website and app, increased net sales by 49% during the same period, a significant jump for the sportswear company.
“This is a testament to the strong demand we are seeing across all channels, geographies and product categories,” said On co-CEO and CFO Martin Hoffman.
The Swiss company raised its full-year sales forecast after beating analysts’ estimates in the first quarter, taking advantage of currency fluctuations. The US, On’s largest market by sales, has performed significantly better than other regions, with its New York stock up 35% since the start of 2024.
On’s growth can be compared to that of other activewear companies. Nike, for example, has launched a $2 billion cost-saving plan over the next three years amid a milder economic crisis. consumer demandwhile the seller Foot locker had to put its growth plan on hold until the market situation improved.
‘Forward and upward
Since its inception in 2010, On has become a superstar in the athletic footwear industry. The shoe is distinguished by the presence of “capsules” on the platform, designed to absorb shock with each step. The Zurich company also cut his niche among fashion-loving luxury consumers willing to spend more on high-quality footwear.
Based on science and innovative design, On shoes quickly became a hit among exercise enthusiasts.especially runners— bringing it to profitability within four years of launch.
The pandemic was a turning point: the company went public in August 2021, its value exceeded $11 billion. In the year since listing, the company has challenged the rest of its industry, achieving a 70% increase in net sales over 2020 amid declining sales across the broader segment. sports market.
A prime example of On’s success was when Hellen Obiri won the Boston Marathon twice in his shoes.
The Swiss brand has launched many new products such as Cloudmonster 2 and Cloudspark and plans to expand into the DTC space to reach more of its customers. The company is also planning to host the Olympic Games this summer to increase brand awareness among the world’s top athletes.
“This is truly the first Olympic Games where we can achieve great success,” Hoffmann told Bloomberg. “And it’s close to our home, so we can be fully present at the games.”
We’ll have to wait and see if Ona’s dream run continues.