A powerful expansion in its D2C channels is helping Swiss premium athletic brand On Holding AG strengthen its foot print across global retail markets, buoyed by a powerful expansion in direct-to-consumer (DTC) channels. The brand’s DTC sales now account for nearly 46 per cent of its total net revenue, providing strong operational insulation against broader macroeconomic pressures facing sportswear retailers.

Apparel diversification pays rich dividends

While high-performance footwear remains On’s principal category, the company’s strategic push into apparel is paying significant dividends. The brand’s net sales in the apparel segment increased by 47.7 per cent Y-o-Y, supported by growing traction among younger demographics under 34 who represent over a third of the customer base. Its emerging markets in the Asia-Pacific region now generate over 20 per cent of global revenues, led by robust performance in China, Japan, and South Korea. As sportswear competitors struggle with heavy promotional discounting, On’s focus on proprietary technology - such as its automated LightSpray manufacturing process and Surreal superfoam cushioning - has solidified its positioning at the premium intersection of performance and lifestyle retail.

Targeting revenue growth through apparel expansion

Founded in Zurich in 2010, On Holding AG designs premium performance footwear, sportswear, and accessories. Key markets span North America, Europe, and Asia-Pacific. Target revenue aims to reach CHF 5.6 billion by 2029 through store openings and apparel expansion. Full-year sales guidance stands near $4.5 billion with gross margins exceeding 65 per cent.