Swiss Athletic Brand Shares High Growth Targets For The Next 3 Years

Two years after its IPO listing, the Zurich-based athletic brand has doubled its revenue and seems on track to becoming a leading premium sportswear brand. Attracting both the running community and those seeking every day comfort, the brand has secured a space in the competitive market of athletic footwear and sportswear, mainly thanks to its focus on continuous product innovation, distribution strategy, and purist personality (with a side of Roger Federer effect, thanks to the iconic athlete investing in the brand in 2019).

On’s goal is to become the leading premium global sportswear brand

The brand held an Investor Day on October 4th in its Zurich headquarters, laying out its strong financial foundations and performance while reaffirming its objectives for the next 3 years. The most notable message conveyed to investors is the ambition to grow the brand tremendously, by expanding into new categories and markets and in turn double revenue between 2023 and 2026. This would put 2026 net sales at nearly $4 billion, with target of an adjusted EBITDA margin of +18% and a 60% gross profit margin. For the fiscal year ending December 31st, 2023, On is expecting to reach CHF 1.76 billion in net sales ($1.93 billion).

“We are extremely proud and pleased with how we have been able to successfully deliver on our mission and growth strategies over the past two years,” said Marc Maurer, Co-CEO, in a press release. “The strength of our brand and products, our outstanding team and innovation capabilities, as well as the very large addressable market, give us numerous opportunities to grow. We are staying true to our core, with controlled expansion into adjacencies, to continue on our path towards the vision to be the most premium global sportswear brand.”

On’s growth ambitions will be fuelled by pushing further its apparel share, entering into new categories (tennis recently launched) and expanding its retail footprint while growing multi-channel distribution. Some of the objectives of the brand include: expansion in China, a boost in brand awareness, an increase in market share of running, and the development of more head-to-toe outfits across a variety of sports.

A performance brand built on unique technology, distinctive features and transparency

On became notorious for its singular running shoe, whose cushioning sole is made up of individual round rubber pods, giving it a unique, slightly bizarre look. Its underlining technology is called “CloudTec”, as swiss-engineered cushioning system that “absorbs impact, reduces strain and adapts to your running style to create a sensation loved by runners around the world” as explained on the brand’s website. The result? A sensation of walking on clouds, making the running shoes adopted by runners early on and unique aesthetics that helped grow brand awareness. Built by athletes and for athletes, the brand’s positioning is clearly centered on comfort and performance, but is now also attracting a larger audience thanks to its casual and everyday shoes as well.

The Swiss brand is deeply focused on continuous innovation, all happening within its Zurich-based On Lab. However, it views technological innovation not just as a product and experience benefit, but also as a means of creating a new generation of environmentally friendly shoes. This is also one of the main differentiators it faces compared to brands like Nike
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or Adidas: instead of releasing a shoe made from recycled plastic bottles to feed the conversation around sustainable practices, On’s ethos is entirely rooted in sustainability. Currently, 30% of its shoes are made free of fossil fuel materials and 100% of products will be made from recycled materials by next year. The company’s value chain is also strongly marked by a circular mindset, from design to material selection and recyclability. The brand’s sustainability report captures its progress, current achievements and concrete objectives for the next years leading to 2030, highlighting its transparency and responsible ways of doing business.

Created in the Swiss Alps in 2010, On has grown significantly and continues to achieve remarkable growth in a crowded and highly competitive market. The brand benefits from a unique positioning, with a strategy rooted in constant technological innovation that marries comfort and performance with environmental consciousness. Boosted by its partnership with Roger Federer in 2019 and its multi-channel distribution approach (speciality retail, mainstream wholesale and later direct-to-consumer), the brand launched a flagship in London’s Regent Street earlier this year and plans to capitalize on its momentum to expand its geographic reach, product assortment and brand awareness. So far, nothing seems to be standing in On’s way, which is only at the beginning of its journey.