What's Happening?
Running brand On has reported record net sales and profitability in the third quarter, with net sales surging 25% to 794.4 million Swiss francs. The company has raised its full-year guidance to assume 34% sales growth on a constant currency basis. Despite
tariff-driven price increases, On's affluent consumer base has responded positively, allowing the company to maintain a full-price strategy during the holiday season. On's growth is driven by store openings, global expansion, and an expanded apparel assortment, with significant gains in both direct-to-consumer and wholesale channels.
Why It's Important?
On's ability to sustain growth amid tariff-driven price increases highlights its strong market position and consumer loyalty. The company's focus on premium business and non-discounting strategy provides a competitive advantage, particularly during the holiday season. On's expansion efforts, including store openings and global market penetration, position it for continued growth. The brand's success in attracting new shoppers through apparel and accessories further diversifies its revenue streams, enhancing its market presence and appeal to younger demographics.
What's Next?
On plans to continue its expansion by opening 20 to 25 stores annually and investing in both physical locations and wholesale partnerships. The company aims to leverage its apparel business as a key acquisition channel, attracting new customers and expanding its market share. On's strategy to build apparel as a standalone business within the company reflects its commitment to innovation and customer experience. As On navigates the holiday season with a full-price strategy, it will focus on sustaining growth and profitability in the competitive sportswear market.
