On Holding AG Raises Sales Forecast Amid Surging Demand

URGENT UPDATE: On Holding AG has just raised its sales and earnings forecasts for 2023, driven by an unexpected surge in demand from buyers in Europe and Asia. This Swiss sneaker brand now anticipates revenue growth of at least 31% on a constant currency basis, significantly exceeding prior analyst estimates and raising their target by three percentage points.

The latest forecast translates to net sales of 2.91 billion Swiss francs (approximately $3.6 billion) at current exchange rates, as confirmed by the company on Tuesday. This robust performance showcases On’s ability to capitalize on favorable market conditions despite challenges in the global sneaker sector.

In the second quarter of this year, On’s sales soared to 749 million Swiss francs, marking a remarkable 38% increase compared to the same period last year, and outpacing analysts’ expectations. The company’s gross profit margin also reached an impressive 61.5%, further solidifying its position in the competitive footwear market.

Martin Hoffmann, CEO of On, expressed confidence in their growth trajectory, stating,

“The energy everywhere is so high. We are in a really strong position and the whole ecosystem is supporting our aspirations.”

This enthusiasm is echoed in the company’s plans to expand its retail footprint, with expectations to open an additional five to ten stores this year, including new locations in Zurich and Palo Alto, California, as well as several in South Korea.

Demand for On’s high-end footwear has surged, particularly in the Asia-Pacific region, where second-quarter revenue skyrocketed by 101%. The brand’s new store in Singapore achieved record sales during its opening weekend, reflecting the overwhelming consumer interest and the brand’s potential for further growth.

Despite facing challenges such as US trade tariffs impacting the sneaker industry, On has successfully increased prices on its premium lifestyle products without deterring buyers. The company recently introduced the highly anticipated Cloudsurfer Max model, which has already seen strong early demand.

As On Holding AG continues to outperform established rivals like Nike and Puma, all eyes are on how this Swiss brand will further innovate and capture market share in the coming months. The sneaker industry is watching closely as On’s strategies unfold, with significant implications for brand competition and consumer trends globally.

Stay tuned for more updates as On Holding AG makes headlines with its ambitious growth plans and evolving market presence.