Swiss-based, New York-listed running shoe company On is on an upward trajectory.
Its iconic crater shoes have become a favorite of runners everywhere, even though they’ve been around for fewer years than some of their peers. The timing couldn’t be better as more and more people are doing it started running as their chosen form of exercise since the COVID-19 pandemic – a trend that We are taking advantage of.
The company, backed by tennis icon Roger Federer, reported a 29% rise in first-quarter revenue in constant currencies, worth 508 million Swiss francs ($560 million). Tuesdayexceeding the half-billion mark for the first time.
Its direct-to-consumer sales, which reach buyers directly through the On website and app, saw net sales increase 49% during the same period, a significant jump for the sportswear company.
“This confirms the strong demand we have experienced across all channels, regions and product categories,” said Martin Hoffman, co-CEO and CFO of On.
The Swiss company raised its annual sales forecast after beating analysts’ estimates in the first quarter, benefiting from currency fluctuations. The United States, On’s largest market by sales, has performed much better than other regions, and its shares in New York have increased 35% since the start of 2024.
On’s growth compares well to other sportswear companies. Nike, for example, has launched a $2 billion savings plan over the next three years in the face of a slowdown in activity. consumer demandwhile the retailer Foot locker had to postpone its growth plan until the market improved.
‘Onward and upward
Since its inception in 2010, On has become a superstar in the busy sports shoe industry. Its shoes are distinguished by the “pods” on the platform of the shoe, designed to absorb impact with each step. The Zurich company also sculpted its niche among luxury consumers who are fashion-loving and willing to splurge more for high-quality shoes.
On shoes, backed by science and innovative design, have quickly become a hit with exercise enthusiasts:especially runners— lead it to profitability within four years of its launch.
The pandemic marked a turning point with the company’s IPO in August 2021, valued at more than 11 billion dollars. In the year since its listing, the company has challenged the rest of its industry by recording a 70% increase in net sales compared to 2020, against a backdrop of declining sales across the board. sector. sports market.
A shining example of On’s success is Hellen Obiri winning the Boston Marathon twice while wearing his shoes.
The Swiss brand has launched a slew of new products, such as Cloudmonster 2 and Cloudspark, and plans to expand into the DTC space to reach more of its buyers. The company is also eyeing the Olympics this summer to build brand awareness among the world’s top athletes.
“This is really the first Olympic Games where we can think big,” Hoffmann told Bloomberg. “And it’s close to home, so we can have our full presence available to bring to the games.”
We’ll have to wait and see if On’s dream run continues.
