100 runners, along with the founders of On, will run alongside the Hudson River this morning and over to Wall Street to ring the opening bell on the New York Stock Exchange. This marks one of the fastest growing global sports brands going public, built on the foundation of their run-in ‘Clouds’ shoe technology.
On is an innovation company at heart. Built by athletes and industry-outsiders, it is now recognized as a leading running brand and taps into an estimated $300 billion sportswear market. With a passion for innovation and expertise in running technology, the sports brand shows that performance, design thinking and sustainability can be a joint force. On recently introduced the first fully recyclable running shoes available only by subscription and has publicly committed to ambitious, science-based reduction targets in greenhouse gas emissions.
On is able to combine hyper-growth with impressive gross margins. With an average annual net sales growth of 85% in the last 10 years, On has been able to continuously grow its gross margin and reached 59% in the first half year of 2021. Consumers are clearly appreciating the patented technology, design and positive impact of the premium sports brand. On’s half year net sales 2021 have grown to CHF 315 million, growth of 85% compared to the same period in 2020.
On is a global brand, resonating with customers in more than 60 countries. Running to Wall Street with its community is in the DNA of a brand born 11 years ago in the Swiss Alps, driven to prominence by World Champions, Olympians and a fanbase around the world who have fallen in love with its unique performance across both shoes and apparel. The On community is not only loyal, they are advocates around the world. North America is On’s biggest market with 49% of the business. The brand’s global footprint includes Europe, Asia, Australia and Latin-America.
The new-generation brand meets consumers wherever they are. On has a strong partnership with some of the most trusted retail partners in approximately 8’100 doors globally to create physical reach and at the same time builds direct connections and proximity to customers through their website and first brand stores. On’s direct-to-consumer business amounted to 37% of net sales in the first half of 2021, compares favorably in the industry and shows the company driving a profitable new multi-channel model.
The brand built on authentic run culture captivates an even wider audience. On successfully bridges the gap between a highly demanding performance audience and culturally obsessed lifestyle consumer. On’s Tech infused sneakers are present in the world’s top sneaker doors and a full apparel line introduced in 2016 is now seen both during and after a run. In a world where sports, life and business mix like never before, it’s no surprise that both audiences appreciate products with performance DNA that can stretch far from the track.
The explorer spirit and a diverse team is a catalyst for innovation at On. On’s initial public offering and listing on the New York Stock Exchange will allow it to continue its unique journey as an independent sports brand and engage with new consumers around the world with agile access to capital. As the On brand continues to progress, the spirit of running and exploration remains paramount.
On has been founded by former World Champion Olivier Bernhard together with his friends and amateur runners David Allemann and Caspar Coppetti. Today, the young team brings together 52 different nationalities, but also the richness of different mindsets and cultural backgrounds. They believe that doing things differently will continue to give On an advantage. On’s roaster of pro athletes shares the same spirit. Swiss tennis icon Roger Federer has recently even become a co-entrepreneur. It’s the same mindset: Dream On.