Swiss running shoe brand On, backed by Roger Federer, accelerates with quarterly revenue of $560 million

Its signature crater shoe has become a favorite of runners around the world, even though it’s been around for fewer years than some of its peers. The timing couldn’t have been better with more people switch to running is 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 first-quarter revenue up 29% year-on-year in constant currency of 508 million Swiss francs ($560 million). on TuesdayThe first time it surpassed the half billion VND mark.

Direct-to-consumer sales, which reach shoppers directly through On’s website and app, saw net sales increase 49% during the same period—a significant jump for sportswear companies.

“This serves as confirmation of the strong demand we have experienced across all channels, regions and product categories,” said On co-CEO and CFO Martin Hoffman. .

The Swiss company raised its annual revenue forecast after beating analysts’ estimates in the first quarter, benefiting from foreign currency fluctuations. The US, On’s biggest market for sales, performed significantly better than other regions, and On’s shares in New York are up 35% since the start of 2024.

On’s growth compares well with other sportswear companies. For example, Nike has launched a $2 billion cost savings plan over the next three years in the face of more difficult economic conditions. consumer demandwhile the retailer Foot locker had to postpone growth plans until the market improved.

‘Upwards and forwards

Since its founding in 2010, On has become a superstar in the crowded sneaker industry. The company’s shoes stand out thanks to the “shells” on the soles designed to absorb impact with each step. The Zurich-based company also did engraving its niche among fashion-conscious luxury consumers willing to spend more money on high-quality shoes.

On’s shoes, based on science and innovative design, have quickly become a hit with fitness enthusiasts—especially runners—bringing it to profitability within four years of launch.

The pandemic marked a turning point as the company went public in August 2021, gaining a higher valuation 11 billion USD. In the year following its listing, the company challenged the rest of the industry by posting a 70% increase in net sales compared to 2020 amid broader sales contraction. sports market.

A prime example of On’s success is when Hellen Obiri won the Boston Marathon twice wearing the company’s shoes.

The Swiss brand has launched a series of new products, such as the Cloudmonster 2 and Cloudspark, and plans to expand in the DTC space to reach more shoppers. They are also targeting this summer’s Olympics to build brand awareness among the world’s top athletes.

“This is really the first Olympics where we were able to have great success,” Hoffmann told Bloomberg. “And it’s close to our home, so we can be fully present for the games.”

We’ll have to wait and see if On’s dream continues.