Swiss Sneaker On Running Crushes Q1 Estimates: Sales Surge 21% Fueled by Direct-to-Consumer Boom

Fashnopsis:

• On Running Crushes Q1 Estimates: Sales Surge 21%
• Direct-to-Consumer Boom Propels On Running to Record Q1
• On Running Profits Soar 106% Alongside Record Sales
• Investor Confidence in On Running Soars After Stellar Q1
• On Running Expands Beyond Running: Eyes Dominating Athletic Apparel Market

Swiss running shoe powerhouse On reported a stellar first quarter, smashing past expectations with net sales of CHF 508.2 million ($560.9 million). This impressive figure marks a 21% year-over-year surge, solidifying their position as a major player in the athletic footwear market.

Direct-to-Consumer Boom Drives Growth

A significant portion of On’s growth stemmed from their thriving direct-to-consumer (D2C) business. Revenue from this channel skyrocketed by 39% compared to Q1 2023, reaching CHF 190.5 million. This demonstrates a successful strategy of building stronger brand relationships and customer loyalty.

Profit Soars Alongside Sales

On’s financial performance wasn’t limited to just sales figures. Net income also saw a significant boost, jumping an impressive 106% to CHF 91.4 million ($100.1 million) compared to the previous year’s CHF 44.4 million. This substantial increase in profitability reflects the company’s efficient operations and strategic direction.

Investor Confidence on the Rise

Fueled by these remarkable results, On’s stock price surged over 14% in early trading, indicating strong investor confidence in the brand’s future potential.

Beyond Running: Expanding Horizons

This record-breaking quarter comes at a pivotal time for On. The company is actively expanding its product line beyond its core running, trail, and tennis footwear offerings. In March, they launched a dedicated tennis apparel category, further solidifying their presence in the performance sportswear market. Additionally, their recent partnership with singer FKA Twigs to design and market a new training apparel and footwear line highlights their commitment to innovation and diversification.

Full-Year Forecast Remains Positive

On maintains its optimistic outlook for the full year, reaffirming its expectation of achieving net sales of “at least” CHF 2.25 billion ($2.48 billion). This ambitious target represents a projected 30% growth compared to their 2023 revenue of CHF 1.79 billion.

Image Source: On Running