Swiss-based, New York-listed running shoe company On is on an upward trend.
Its distinctive nozzle shoes have become a favorite of runners around the world, even though it has been around for fewer years than some of its peers. The timing couldn't be better as more people did I turned to running as their form of exercise of choice since the Covid-19 pandemic – a trend that On is capitalizing on.
The company, backed by tennis icon Roger Federer, reported a 29% jump in first-quarter sales year-over-year in constant currency terms of 508 million Swiss francs ($560 million). Tuesdaysurpassing the half-billion mark for the first time.
Its direct-to-consumer sales, which reach shoppers directly through On's website and app, saw net sales increase 49% over the same period, a big jump for the activewear company.
“This is a validation of the strong demand we have seen across all channels, regions and product categories,” said Martin Hoffmann, co-CEO and CFO of On.
The Swiss company raised its annual sales forecast after exceeding analysts' estimates in the first quarter, benefiting from foreign currency fluctuations. The United States, On's largest market by sales, has performed much better than other regions, and its New York shares are up 35% since the start of 2024.
On's growth compares well with other sports apparel companies. For example, Nike launched a $2 billion cost-savings plan over the next three years in the face of softer pressures. Consumer demandwhile retail stores Foot locker She had to postpone her growth plan until the market improved.
“Onward and upward.”
Since its inception in 2010, On has become a star in the crowded sneaker industry. Her shoes stand out because of the “horns” on the shoe's platform that are designed to absorb shock with every step. The Zurich-based company has also sculpted His status Among luxury, fashion-forward consumers who are willing to spend more on quality footwear.
Based on science and innovative design, ON shoes quickly became a hit with exercise enthusiasts.Especially runners– Drive it to profitability within four years of launch.
The pandemic was a turning point, with the company going public in August 2021, at a valuation of more than $100 million. 11 billion dollars. In the year following its listing, it defied the rest of its industry by recording a 70% increase in net sales compared to 2020 amid shrinking sales in the wider world. Sports market.
A shining example of On's success was when Helen Obiri won the Boston Marathon twice wearing her 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 shoppers. It is also looking to the Olympics this summer to build brand awareness among the world's best athletes.
“This is really the first Olympics where we can make a big splash,” Hoffman said He told Bloomberg. “It is close to our home, so we can have full attendance at the matches.”
We will have to wait and see whether On's dream continues or not.