On Records Another Bumper Quarter

Swiss sneaker giant On has showcased impressive financial results, reporting net sales of CHF 567.7 million ($654.4 million) for the second fiscal quarter ending June 2024. This figure represents a remarkable 28% increase from the same period last year, marking the second consecutive quarter of record revenue for the company.

Despite the robust sales figures, On experienced a minor setback in the stock market, with shares dropping up to 10% in pre-market trading. The company’s gross margin of 59.9% fell slightly short of Wall Street’s expectation of 60.1%. Nevertheless, On’s shares have climbed 47% since the start of the year, indicating strong investor confidence amid these fluctuations.

A significant driver of On’s success has been its expansion into apparel and accessories, with sales soaring by 63% and 24% year-on-year, respectively. The company saw a staggering 85% growth in sales across Asia, especially in key markets like China and Japan. This strategic diversification has allowed On to evolve from its roots as a running shoe specialist into a formidable player in the broader lifestyle market.

Financially, On reported net income of CHF 30.8 million, nearly tenfold its earnings of CHF 3.3 million in the second quarter of 2023. The company has maintained its optimistic forecast for the full year, expecting a gross margin around 60% and total net sales reaching CHF 2.26 billion ($2.6 billion).

Key partnerships have also amplified On’s visibility. The recent unveiling of its tennis apparel category and collaboration with British singer FKA Twigs for a new training apparel line, alongside the signing of actress Zendaya as a brand ambassador, highlights the company’s commitment to broadening its market reach and brand appeal.

With a focus on innovation and new partnerships, On continues to position itself as a leader in the sportswear industry, successfully blending performance with lifestyle offerings, appealing to a wider audience.