Zurich-based sports brand On Holding announces robust financial growth, with significant increases in net income and sales as it nears its 15th anniversary.

Zurich-based sports brand On Holding has announced significant financial developments as it approaches its 15th anniversary. The company revealed its fourth-quarter results for the period ending December 31, highlighting a robust net income of 89.5 million Swiss francs, marking a turnaround from a loss of 26.8 million Swiss francs during the same period last year. Adjusted net income similarly showed a positive trajectory, rising to 107.7 million Swiss francs compared to a loss of 16.3 million Swiss francs in the previous year. Overall, net sales for that quarter rose by 35.7 percent, reaching 606.6 million Swiss francs.

Sales performance varied across product categories, with footwear accounting for a substantial part of the growth—shoe sales climbed 33.6 percent to 568.8 million Swiss francs. Apparel sales saw an impressive increase of 77.5 percent, amounting to 32.6 million Swiss francs, while accessories experienced an 80 percent boost, totaling 5.2 million Swiss francs.

Direct-to-consumer (DTC) sales significantly contributed to the financial success, increasing by 43.2 percent to 296.2 million Swiss francs. Wholesales also saw a commendable rise of 29.1 percent, bringing in 310.4 million Swiss francs. Revenues were geographically diverse, with the Europe, Middle East, and Africa region reporting a rise of 31 percent to 147.4 million Swiss francs, while the Americas increased by 28.1 percent to 385.1 million Swiss francs. However, the Asia-Pacific region experienced remarkable growth, soaring by 117.5 percent to 74.1 million Swiss francs.

David Allemann, cofounder and executive co-chairman of On, emphasized the company’s excitement as it steps into 2024, calling it a defining moment in the brand’s history. In an interview with Women’s Wear Daily, he stated, “As we celebrate our 15th anniversary and step into our next chapter, we recognize 2024 as a particularly defining moment in On’s history— a year that has not only elevated our presence on the global stage but also captured the hearts of multiple generations.” He attributed the brand’s growing appeal to collaborations with notable figures like Roger Federer and Zendaya, stating it has helped ignite passion for the brand across different demographics and cultures.

Looking forward, Allemann noted plans to expand beyond the footwear category, highlighting a strategic focus on becoming a “head-to-toe brand.” He pointed out that although apparel currently comprises only 5 percent of sales, its strong performance signals growth potential that aligns with the company’s future strategies. The company intends to open an additional 19 stores this year, building on the increasing significance of its physical retail presence.

In a noteworthy marketing collaboration, On previously featured Roger Federer and Elmo from “Sesame Street” in its debut Super Bowl advertisement. This partnership created significant buzz and was expected to enhance global recognition of the brand. Recently, the company enlisted Elmo again for the launch of its Cloudsurfer 2 sneaker, as part of the “Soft Wins” campaign, which encourages a balanced approach to running.

In terms of total yearly performance, On reported net income of 242.3 million Swiss francs for the year, compared to 79.6 million Swiss francs the previous year. The adjusted net income rose to 317.4 million Swiss francs from 112.4 million Swiss francs. Overall sales for the year jumped by 29.4 percent to 2.3 billion Swiss francs, with footwear sales contributing significantly at 2.2 billion Swiss francs. Apparel sales echoed a strong trend, increasing by 46.7 percent to reach 101 million Swiss francs.

Martin Hoffmann, co-chief executive officer and chief financial officer of On, highlighted the company’s strong momentum as it closes out the year. He expressed pride in exceeding 2.3 billion Swiss francs in net sales and nearing a cash position of 1 billion Swiss francs. Looking ahead to 2025, Hoffmann mentioned the company is on track to meet its midterm targets established at the 2023 investor day, with expectations of net sales growing by at least 27 percent to 2.94 billion Swiss francs.

Source: Noah Wire Services