By
Bloomberg
Published
May 14, 2024
Swiss sneaker maker On Holding AG posted strong first-quarter revenue and nudged its sales forecast higher for the year, boosted by demand for its running shoes and new line of training apparel.
Roger Federer-backed On reported quarterly sales of 508 million Swiss francs ($560 million) at constant exchange rates, up 29% from a year ago and ahead of market expectations.
The stock rose as much as 18% in trading before US markets opened. That’s after the shares climbed 14% this year through Monday’s close in New York.
Founded just over a decade ago, On has expanded rapidly across Europe and North America thanks in part to strong uptake from a growing network of wholesale partners and specialty running stores. Now, it’s deepening its presence in tennis and training as it looks to take more market share from bigger rivals like Adidas AG and Nike Inc.
The Zurich-based company said it now expects full-year sales of 2.29 billion Swiss francs, slightly higher than the 2.27 billion-franc average of analyst estimates.
Its momentum has turned the company into a darling in the sports industry, raising the stakes for On to keep up the pace or risk disappointing investors.
“We have moved from a hyper-growth moment to more durable growth,” co-Chief Executive Officer Martin Hoffmann said in an interview.
On still has room for growth in running, where it has its most developed portfolio of products. It recently unveiled new footwear including the Cloudmonster 2 and Cloudsurfer Trail and hopes to make a strong showing with its sponsored athletes at the Paris Olympics this summer.
The company has garnered praise from analysts for its lack of discounts, drawing similarities to “athleisure” giant Lululemon Athletica Inc.
