Dive Brief:
- Athletics brand On plans to double net sales between 2023 and 2026 to at least 3.55 billion Swiss francs (about $3.9 billion), according to a Wednesday press release.
- The footwear company also expects to exceed 60% gross profit margin by 2026. For more long-term targets, On hopes to grow net sales by 20% to 25% per year and reach an apparel share of 10% or more.
- On reiterated its previously reported outlook for the fiscal year ending Dec. 31, anticipating net sales of 1.76 billion Swiss francs and at least 58.5% gross profit margin.
Dive Insight:
On’s newly released financial targets demonstrate the brand’s growth since its IPO.
“We have an exciting product pipeline that includes running, training, and tennis footwear and apparel. Additionally, we believe there are huge opportunities to increase brand awareness and to expand through our multi-channel approach. We are enthusiastic about our continued growth,” Martin Hoffmann, co-CEO and CFO, said in a statement. “The 2026 targets announced today continue to be above the long-term ambitions shared at the time of the IPO, and we view them as an intermediate step in our ambition to build a much bigger company in the future.”
The company’s direct-to-consumer channel presents a key opportunity for the brand, executives said during the company’s investor day event Wednesday. On expects to operate more than 30 stores in total by the end of the year, with 10 stores outside of China. Owned retail has driven growth for the brand, with new stores driving a visible lift in its e-commerce and wholesale sales.
During its investor day, the company’s executives emphasized its focus on product and technology innovation. On will release the new Cloudmonster Hyper shoe in February of next year. Though the brand did not reveal specifics, On also announced that it will reveal two new speed-enhancing technologies by August 2024.
On will roll out its Cleancloud EVA technology to footwear technology in 2025, about two to three years ahead of its initial timeline expectations. To further growth, On will also expand its training category offerings, with new apparel products and a dedicated footwear release.
