Swiss Shoemaker 'On' Races Past CHF 3 Billion in Annual Sales

Zurich’s own On has shattered expectations and broken barriers, racing past the CHF 3 billion sales mark for the first time in its 15-year history. This isn't just growth; it is a declaration of intent from a Swiss brand that refuses to slow down. The company reported a staggering CHF 3.01 billion in sales, marking a robust 30% increase over the previous year. Even more impressive, when stripped of the dampening effects of a strong Swiss franc, that growth figure swells to 36% at constant exchange rates.

From its humble beginnings in Zurich to the global stage, On has transformed from a niche runner's secret to a dominant lifestyle juggernaut. This milestone underscores the brand's relentless momentum in a crowded market dominated by legacy giants. The surge is not accidental; it is the result of a calculated premium strategy that has seen the brand tighten its grip on pricing while expanding its direct-to-consumer channels. As the company celebrates its 15th anniversary, it does so not by looking back, but by setting a blistering pace for the rest of the industry to follow.

While the brand remains Swiss at heart, its pulse is beating fastest in the East. The Asia-Pacific region has emerged as the new engine of hyper-growth, with sales nearly doubling to hit CHF 511 million. This dramatic surge signals a successful penetration of lucrative Asian markets where demand for premium Western technical gear is skyrocketing. The dynamic development in this region has proven to be a critical counterweight to slower growth in mature markets.

Meanwhile, the Americas continue to serve as the brand's unshakeable fortress. As the company's largest market, North and South America generated a colossal CHF 1.74 billion, representing an 18% increase year-on-year. Closer to home, the EMEA region (Europe, Middle East, and Africa) refused to be left behind, posting a solid 32% increase to reach CHF 763 million. This tripartite geographic success story illustrates a balanced global portfolio, proving that On’s appeal is not limited by borders or cultures. The Zurich-based group, listed on the New York Stock Exchange, is now truly a citizen of the world.

It is no longer just about what is on your feet. On is aggressively diversifying its portfolio, and the numbers prove the strategy is working. While footwear continues to command the lion's share of revenue at CHF 2.8 billion—a healthy 28% growth—the real explosion is happening in apparel and accessories. The clothing segment surged by an incredible 68%, while the accessories business more than doubled, rocketing up by 124%.

Although these segments currently contribute a smaller slice of the total pie—CHF 170 million and CHF 40 million respectively—their trajectory is undeniable. This shift indicates a successful transition from a pure footwear manufacturer to a holistic lifestyle brand. By capturing the runner from head to toe, On is deepening customer loyalty and increasing basket size. The rapid adoption of their non-footwear lines suggests that the brand's aesthetic and technical promises are resonating well beyond the sole, paving the way for a future where On is as recognized for its jackets as it is for its CloudTec soles.

Profitability is soaring, but the strong Swiss franc remains a formidable opponent. On has successfully executed a premium strategy, significantly reducing discounts and keeping more revenue in-house through its own online shops and flagship stores. This discipline drove adjusted EBITDA up by a massive 46% to CHF 567 million, widening the profit margin from 16.7% to an impressive 18.8%. This is a company that is becoming more efficient at making money with every shoe sold.

However, the currency markets were less forgiving. The relentless strength of the Swiss franc acted as a brake on what could have been an even more spectacular financial report. Negative currency effects slashed into the bottom line, causing adjusted net profit to drop by 16% to CHF 266 million. These currency headwinds wiped out operational gains that would have otherwise flowed to the bottom line. Consequently, shareholders will have to wait for their payday; despite the record revenues, the company will not be distributing a dividend, choosing instead to reinvest in its aggressive growth trajectory.

Looking ahead, the On Group—backed by tennis legend Roger Federer—shows zero signs of fatigue. The company has issued a confident forecast for 2026, projecting currency-adjusted sales growth of at least 23%. If realized, this would push annual sales to a minimum of CHF 3.44 billion. The management is also targeting further efficiency, expecting the adjusted EBITDA margin to climb to between 18.5% and 19%.

This forward guidance suggests that On believes its current momentum is sustainable, despite global economic uncertainties. By betting on continued expansion in Asia, a broadening product mix, and a steadfast commitment to premium positioning, On is positioning itself to not just compete with, but potentially overtake, established legacy brands. For Switzerland, On represents a modern economic champion—innovative, global, and resilient. As they lace up for the next fiscal year, the message to the market is clear: the race has only just begun.