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Swiss performance sportswear brand On, backed by tennis star Roger Federer, is targeting double sales growth by 2026 through expansion in China and its own retail as it announces a new strategic plan to ignite further growth.
Announced as part of its Investor Day at On Labs in Zurich, Switzerland, the sportswear company said that following its record of strong growth and increasing profitability, it intends to double net sales between 2023 and 2026 to at least 3.55 billion Swiss francs. This reflects a CAGR of over 26 percent based on the outlook for the full fiscal year ending December 31, 2023.
As part of its strategic vision for the next stage of growth, it has introduced three growth pillars – elevate, expand and establish, as it looks to build the foundations for a “much bigger company in the future,” as it seeks to become the world’s “most premium” sportswear brand.
Marc Maurer, co-chief executive at On, said in a statement: “We are extremely proud and pleased with how we have been able to successfully deliver on our mission and growth strategies over the past two years.
“The strength of our brand and products, our outstanding team and innovation capabilities, as well as the very large addressable market, give us numerous opportunities to grow. We are staying true to our core, with controlled expansion into adjacencies, to continue on our path towards the vision to be the most premium global sportswear brand.”
On targeting expansion of own retail and China to double sales by 2026
The Zurich-based company said it would achieve its ambitious growth by looking to elevate its core areas, such as driving market share in running through brand awareness among its communities as well as its performance credibility and sustainability impact.
In addition, while it adds that it is currently at the early stages of geographic expansion, it sees “potential to build its footprint considerably,” and for its ‘expand’ pillar, it is targeting its premium multi-channel distribution and its own retail presence, such as the opening of its debut store in London earlier this year.
The sportswear brand is also looking to expand its footprint in China, a region it hopes will pull in more than 10 percent of its net sales by 2026.
The final pillar is ‘Establish,’ where On is looking to strategically add new categories, such as tennis and training, as part of its ambition to establish full head-to-toe looks across all its verticals. It hopes that apparel will become a 10 percent share of its business.
Martin Hoffmann, co-chief executive and chief financial officer at On, added: “We have an exciting product pipeline that includes running, training, and tennis footwear and apparel. Additionally, we believe there are huge opportunities to increase brand awareness and expand through our multi-channel approach. We are enthusiastic about our continued growth.
“The 2026 targets announced today continue to be above the long-term ambitions shared at the time of the IPO, and we view them as an intermediate step in our ambition to build a much bigger company in the future.”
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