What do Zendaya and Elmo have in widespread? They’re each serving to On Holding achieve a bigger foothold within the international sports activities world.
On Tuesday morning, the Zurich-based sports activities model reported that within the fourth quarter ended Dec. 31, web revenue hit 89.5 million Swiss francs, reversing a lack of 26.8 million Swiss francs in the identical interval the prior yr. Adjusted web revenue was 107.7 million Swiss francs versus a lack of 16.3 million francs within the prior-year quarter. Web gross sales within the quarter rose 35.7 p.c to 606.6 million Swiss francs.
By class, gross sales of sneakers elevated 33.6 p.c to 568.8 million Swiss francs, whereas attire gross sales rose 77.5 p.c to 32.6 million, and equipment have been up 80 p.c to five.2 million Swiss francs.
Web gross sales by direct-to-consumer channels have been additionally robust, rising 43.2 p.c to 296.2 million Swiss francs, whereas wholesale gross sales elevated 29.1 p.c to 310.4 million Swiss francs.
By area, gross sales within the Europe, Center East and Africa area have been up 31 p.c to 147.4 million Swiss francs, whereas the Americas area rose 28.1 p.c to 385.1 million Swiss francs, and Asia-Pacific was up 117.5 p.c to 74.1 million Swiss francs.
David Allemann, cofounder and government co-chairman of On, mentioned: “As we have a good time our fifteenth anniversary and step into our subsequent chapter, we acknowledge 2024 as a very defining second in On’s historical past — a yr that has not solely elevated our presence on the worldwide stage but additionally captured the hearts of a number of generations. Our partnerships with icons like Roger Federer, Zendaya, and FKA Twigs have propelled On to turn into a beloved model, igniting a ardour for On that transcends borders and cultures. Our robust efficiency demonstrates the facility of the goals we’ve dared to dream and the unwavering spirit of our group. Trying forward, we’re full of a way of objective. By persevering with to champion innovation, strengthen our core franchises, and foster significant connections by life-defining moments, we’re assured that On is constructed to maintain enduring model love for many years to come back —inspiring a motion that celebrates the human spirit.”
In an interview with WWD, Allemann mentioned On is now accessible in 80 nations and its robust ends in 2024 “outline what we are able to do sooner or later.” He mentioned the corporate is performing forward of what it had projected and even noticed an acceleration within the fourth quarter.
Trying forward, he mentioned the corporate will work to increase past its roots in footwear to turn into extra of a “head-to-toe model.” He pointed to the robust efficiency of attire within the fourth quarter, which outperformed its sneakers. And whereas attire continues to be solely 5 p.c of gross sales, “we see robust progress and it’s a key aspect of our technique” going ahead.
He additionally pointed to the DTC enterprise, which now represents almost half of total gross sales, and mentioned that whereas the positive aspects have been pushed by the web site, the corporate’s 50 bodily shops have turn into “more and more vital.” Attire has confirmed to be a powerful performer within the firm’s shops.
Allemann mentioned the plan is so as to add one other 19 shops this yr.
He additionally mentioned that the corporate’s first Tremendous Bowl industrial, that includes On investor Roger Federer and Elmo of “Sesame Avenue” fame taking a lighthearted strategy to the corporate’s title, “created buzz and put On within the mouth of everybody around the globe.”
The corporate returned to Elmo to assist launch its newest marketing campaign for its Cloudsurfer 2 sneaker, Gentle Wins, which challenges the thought of going laborious and seeks to encourage runners with a softer, extra balanced strategy.
For the yr, On reported web revenue hit 242.3 million Swiss francs from 79.6 million Swiss francs the prior yr. Adjusted web revenue rose to 317.4 million Swiss francs from 112.4 million Swiss francs the prior yr. Gross sales within the yr elevated 29.4 p.c to 2.3 billion Swiss francs from 1.8 billion Swiss francs in 2023, with footwear gross sales rising 28.5 p.c to 2.2 billion Swiss francs, attire gross sales up 46.7 p.c to 101 million Swiss francs and equipment gross sales up 49.5 p.c to 17.7 million Swiss francs.
Web gross sales by the DTC channel for the yr rose 40.4 p.c to 942.8 million Swiss francs and wholesale gross sales rose 22.8 p.c to 1.4 billion Swiss francs.
The corporate additionally reported that it’s monitoring forward of the midterm targets it had outlined at its investor day in 2023 and is now anticipating web gross sales in 2025 to develop a minimum of 27 p.c to 2.94 billion Swiss francs with the next progress fee anticipated within the first half.
Martin Hoffmann, co-chief government officer and chief monetary officer of On, added: “We shut this exceptional yr with immense satisfaction in all that we’ve achieved. Exceeding 2.3 billion Swiss francs in web gross sales and reaching a money place near 1 billion Swiss francs usually are not simply milestones however testaments to On’s continued robust momentum, all made attainable by the unbelievable work of our crew. In 2024, we witnessed unforgettable moments unfold on the world’s greatest levels and noticed a big enhance in international model consciousness, carrying our message of innovation and inspiration to each nook of the world. All the achievements and distinctive moments in 2024 give us an unbelievable quantity of power for 2025. We’re excited to launch a firework of latest merchandise and ship an much more premium expertise at each touchpoint to our followers. In the end constructing with our group and followers in the direction of changing into probably the most premium international sportswear model.”
