Embarking on an ambitious journey, Swiss athletic brand On sets its sights on achieving sales exceeding €3.5 billion by 2026. The brand, founded just thirteen years ago, is rapidly evolving from a running challenger into a multi-sport, multi-channel, and comprehensive sportswear brand.
The unveiling of On’s flagship store in Paris signifies its strong emphasis on running, with over 30 global stores catering to diverse runner needs. Beyond running shoes, On is diversifying its range, venturing into tennis following Roger Federer’s investment and introducing lifestyle products under the Move On umbrella, available in mainstream networks like Foot Locker and JD Sports.
While footwear remains a primary growth driver, On strategically expands into textiles, targeting an ambitious increase from 10% to 20%. The textile category encompasses a diverse range, from t-shirts and shorts to fleeces and down jackets.
Bianca Pestalozzi, Director of the brand in Europe, highlights the potential for textile growth, unveiling plans to leverage CleanCloud technology for a more sustainable approach.
On’s success in the footwear category propels impressive growth, reaching nearly 47% in the latest quarter, totaling 480 million Swiss francs. Direct sales surge by 55%, with retail accounting for 34% of business, and wholesale sales rise by 43%, reaching 316 million Swiss francs.
Geographically, the Americas lead with a 60% growth to 295 million Swiss francs, followed by the Europe-Middle East-Africa region at 144 million Swiss francs, up by 20%, and the Asia-Pacific region showing a remarkable 71% increase to almost 42 million Swiss francs.
On’s ambitious goals include doubling sales to 3.55 billion Swiss francs by 2026, achieving a gross margin exceeding 60%, and increasing the adjusted Ebitda margin to over 18%. The brand remains committed to focusing on running, driving innovation, expanding retail presence, and establishing itself as a comprehensive sportswear brand, particularly in China.
As On aims high, industry giants like Nike, Adidas, and Puma closely monitor its strides in the competitive market.
