Team Europe's Roger Federer in action during his doubles match with Rafael Nadal against Team World's Jack Sock and Frances Tiafoe Action Images via Reuters/Andrew Boyers
Swiss sneaker maker On Holding predicted that sales will grow almost 40% this year, helped by the expansion of its tennis and running footwear lines.
The brisk growth would build on an exceptionally strong fourth quarter in which revenue almost doubled, widely surpassing analyst estimates.
"The supply chain craziness is behind us and our full team can focus on what matters to the customer,” Co-Chief Executive Officer Martin Hoffmann said in an interview Tuesday.
The company, backed by Swiss legend Roger Federer, is building on its tennis credentials, recently signing star players Iga Świątek and Ben Shelton. The shoemaker also has plenty of room for growth - especially in the US - as it expands beyond specialty running stores and puts products in bigger retailers like Footlocker and Dick’s Sporting Goods, Hoffmann said.
Based in Zurich, the upstart has avoided the huge inventory problems that are causing rivals including Adidas AG and Puma SE to resort to heavy discounting, especially in the US. More than 90% of On’s holiday sales were at full price, Hoffmann said.
On had fourth-quarter sales of 367 million Swiss francs ($395 million), 33% higher than the average analyst estimate.
In 2023, the company expects sales to rise by 39%, reaching 1.7 billion francs. Profits should also expand as On reduces its reliance on expensive air freight.
Shares of On, which is listed in New York, are up 26% this year, outperforming rivals including Nike Inc., Adidas AG and Puma SE.
