On sneakers. Photo: Footwearnews.com
Swiss On struggles in the US market, reports growth in Asia
Swiss premium sportswear and footwear brand On missed Wall Street expectations for net sales in its second fiscal quarter. For the quarter ended June 30, On posted net revenue of 850,3 million Swiss francs ($1,05 billion), below analysts' expectations of 878,16 million francs.
Sales growth slowed to 13%, after 17% in the first quarter, in its core market of North and South America, which accounts for more than half of revenue, due to the impact of US tariff policy and generally weakening consumer demand in the market.
At the same time, the company continued to demonstrate strong growth outside its core market, with sales in the Asia-Pacific region up 54,7%.
On's management emphasized that they prioritize profitability over sales growth. At the same time, On projects its annual net sales to be between CHF 3,47 billion and CHF 3,56 billion at constant exchange rates, wider than its previous guidance range.
"We're proving that the brand can go global without sacrificing its premium positioning," David Allemann, founder and co-chairman of On, said Tuesday. "Our second-quarter results reflect this discipline, demonstrating significant growth in net sales worldwide, significant expansion of our owned channels, and exceptional gross margins. This financial stability allows us to reinvest in what drives our long-term success: strong brand connections, a premium customer experience, and, above all, continuous performance improvement. Our strategy, rooted in the founders' vision, allows us to focus on the right decisions and build a global premium sportswear brand with impressive financial performance and potential for continued growth for decades to come."
Founded in 2010, On quickly gained popularity in the sportswear market, previously dominated by Nike and Adidas, capturing significant market share. On's sneakers, featuring distinctive perforated soles, are renowned and enjoy a loyal following worldwide.
Swiss premium sportswear and footwear brand On missed Wall Street expectations for net sales in its fiscal second quarter. For the quarter ended June 30, On…
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