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On Holding AG raised its sales outlook for the year as the Swiss sneaker maker steps up its competition with bigger rivals such as Adidas AG and Nike Inc.
The Roger Federer-backed company now expects net sales of at least 2.29 billion Swiss francs ($2.6 billion) this year, up slightly from the previous target. Its net sales hit a record high last quarter, jumping 33 percent from a year earlier at constant exchange rates and beating analyst expectations. The growth was largely driven by higher sales through the company’s own stores and websites, On said in a statement.
Founded in 2010, Zurich-based On has expanded rapidly across Europe and North America, seeing particular success at specialty running stores and upscale wholesale partners. The company is expanding into sportswear with a new line of apparel and a partnership with its new brand ambassador, the singer and actress Zendaya. On also posted rapid growth in Asia.
Martin Hoffmann, who serves as On’s co-chief executive officer and chief financial officer, said in an interview that the company, which sells $160 sneakers and $130 hoodies, isn’t planning on widespread discounts during the year-end holiday season.
On shares have nearly doubled in value this year through Monday’s close, compared with a 29 percent decline for Nike over the same period and a 21 percent gain for Adidas.
By Tim Loh and Lily Meier
Learn more:
Swiss Sportswear Brand On Taps Zendaya as Latest Ambassador
The American actress will co-produce brand campaigns and collaborate on one-off collections as the label continues its expansion beyond the running category.
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