Federer-backed On shoes hits CHF2bn sales landmark

On exceeds two billion in sales for the first time Keystone-SDA

Swiss sports shoe brand On achieved sales of more than CHF2 billion for the first time in 2024.

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In its anniversary year 2025, the Zurich-based running shoe manufacturer is aiming for further growth and is focusing on global stars such as Roger Federer and Zendaya.

On Holding’s sales rose by 29% to CHF2.32 billion in 2024, the Group announced on Tuesday. The strong Swiss franc had a negative impact on growth. At constant exchange rates, growth amounted to 33%.

The company, which is listed on the New York Stock Exchange, generated sales of CHF1.48 billion in its largest market, America, alone, which is 27% more than in the previous year. On grew fastest in Asia: +85% to CHF260 million. However, sales in the EMEA region also rose significantly to CHF578 million (+18%).

The Zurich-based company continued to generate the majority of its sales with shoes. Shoe sales rose by 29% to CHF2.20 billion. However, the clothing and accessories segments grew much faster, with growth rates of around 50%. However, their share of sales remained very low at CHF101 million and CHF18 million respectively.

On also benefited from investments in advertising: partnerships with stars such as Roger Federer and Zendaya have made On a popular brand that crosses cultures and appeals to several generations.

Even bigger and more profitable

At the same time, On was able to increase its profitability last year. The operating result (adj. EBITDA) rose by 40% to CHF388 million Swiss francs. The corresponding margin amounted to 16.7% after 15.5% in the previous year.

The higher profitability is due not least to the increasing share of more profitable direct sales (DTC). At CHF943 million, they accounted for almost 41% of total sales in the reporting year. In the previous year, this figure was 37%.

Net profit amounted to CHF242 million last year. This is a good three times as much as in the previous year. Shareholders will still have to do without a dividend. The Group has not held out the prospect of a distribution.

Further growth planned

On is continuing to focus on growth and wants to become even more profitable. For its 15th anniversary year in 2025, the company is forecasting currency-adjusted sales growth of “at least” 27%. At current exchange rates, this would correspond to sales of CHF2.94 billion or more.

At the same time, the adjusted EBITDA margin is expected to rise to between 17% and 17.5% in 2025. The further expansion of the DTC channel will contribute to this. The operating profit margin should then reach 18% in the following year 2026.

Translated from German by DeepL/mga

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