Company Overview

On Holding AG is a Switzerland-based company active in the athletic sports accessories industry and a premium performance sports brand rooted in technology, design, and impact. Founded in 2010 by Olivier Bernhard, David Allemann, and Caspar Coppetti, the company is headquartered in Zurich, Switzerland, and has rapidly grown into a global leader in the athletic footwear and apparel industry. The company went public in September 2021, listing on the New York Stock Exchange under the ticker symbol "ONON."

Its shoes, apparel, and accessories products are designed predominantly for athletic use, casual, or leisure purposes. ONON is renowned for its innovative approach to running shoes, particularly its patented CloudTec® technology, which revolutionized cushioning and performance in athletic footwear.

Market Position & Financial Performance

Today, On Holding AG has a market capitalization of approximately CHF 14.89 billion, which has seen a recent increase. The company has demonstrated impressive financial growth in recent years, positioning itself as a significant player in the premium sportswear segment.

Key Financial Highlights (2024):

- Net sales reached CHF 2.3 billion, a 29.4% increase year-over-year.

- Net income of CHF 242.3 million, a remarkable 204.5% rise.

- Cash and cash equivalents increased by 86.9% to CHF 924.3 million.

Recent Quarterly Performance:

- Q2 2025:

- Net sales increased by 32.0% year-over-year, reaching CHF 749.2 million.

- Direct-to-Consumer channel net sales grew 47.2% on a reported basis.

- Q1 2025:

- Record quarterly net sales of CHF 726.6 million, growing by 43.0% year-over-year.

- Gross Profit Margin: 59.9%, up from 59.7% in Q1 2024.

- Net Income: CHF 56.7 million.

Business Model & Product Portfolio

Core Products

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. The company's average shoe retail price ranges from $160 to $250, which is significantly higher than the industry average of $120, reflecting its premium positioning.

Product Categories:

- Footwear: Performance running shoes featuring proprietary CloudTec® technology.

- Apparel: Running tops and bottoms made with lightweight, breathable materials, plus outerwear for weather resistance.

- Accessories: Performance socks, caps and headwear, plus lightweight bags.

Distribution Channels

The company sells its products worldwide through independent retailers, global distributors, its own online presence, and its own physical stores. ONON operates a direct-to-consumer (DTC) model alongside traditional retail distribution, with e-commerce facilitating direct customer purchases.

Revenue by Channel (Q1 2025):

- Direct-to-Consumer Sales: CHF 26.9 million, a 45.3% increase year-over-year.

- Wholesale Sales: CHF 449.7 million, a 41.5% increase year-over-year.

Competitive Positioning & Innovation

On is recognized as one of the companies actively gaining market share from larger competitors, most notably within the running segment. While its annual sales are a fraction of giants like Nike, On has cultivated a strong reputation for innovation and disruptive design.

Key Innovations & Recognitions:

- Proprietary CloudTec® technology: This unique design approach in athletic footwear features distinctive cushioning elements that provide responsive energy return and lightweight performance.

- Industry Recognition: Recognized by Fast Company as the number one most innovative company in the design category for its LightSpray technology.

- Product Launches: Recent successful product launches include the Cloudsurfer 2 and Cloud 6, with the Cloud 6 marking the largest product launch in the company's history.

Global Expansion & Market Presence

Geographically, On Holding AG derives a majority of its revenue from the Americas, with significant contributions from Europe, the Middle East, Africa (EMEA), and the Asia-Pacific region. The company has demonstrated particularly strong performance in key growth markets:

Regional Performance:

- China: Sales grew approximately 50% in Q2 2025 compared to the year-ago period, with 50% same-store growth in retail stores and even higher growth in e-commerce.

- EMEA: Generated CHF 168.6 million in Q1 2025, representing a 33.6% increase on a reported basis.

Strategic Investments & Future Outlook

R&D Investment:

- In fiscal year 2023, On Holding AG invested $99.7 million in research and development expenses, which represented 9.4% of its total revenue.

- The company's business model is heavily focused on innovation, with substantial investments in R&D aimed at creating cutting-edge products. It also leverages data analytics to gain insights into consumer preferences.

Strategic Priorities:

The company's strategic focus includes:

- Product Innovation: Continued investment in R&D to drive new product development.

- Sustainability Goals: Commitment to using recycled materials and reducing environmental impact.

- Global Expansion: Targeting growth in key markets across North America, Europe, and Asia-Pacific.

- Digital Transformation: Enhancing its e-commerce platforms and digital customer experience.

- New Product Categories: Exploring opportunities in adjacent and new product segments.

2025 Outlook:

On Holding AG anticipates achieving a constant currency net sales growth rate of at least 27% for 2025, with a strategic aim to maintain its gross profit margin around 60.5%.

On Holding AG represents a compelling growth story in the premium sportswear segment, combining innovative technology, strong brand positioning, and robust financial performance as it continues to expand its global footprint and challenge established industry leaders.