Swiss Shoemaker 'On' Races Past CHF3 Billion in Annual Sales

Zurich's own On has officially vaulted into the retail stratosphere. In a staggering display of commercial velocity, the Swiss shoemaker has smashed through the CHF 3 billion revenue barrier for the first time in its history. Celebrating its 15th anniversary, On reported a massive 30% surge in sales, closing the books at CHF 3.01 billion. This isn't just growth; it is an acceleration that defies the gravity of a sluggish global retail environment.

At constant exchange rates, the picture is even more dramatic, with growth clocking in at 36%. What started as a niche running brand has metamorphosed into a global juggernaut, listed on the New York Stock Exchange and backed by tennis legend Roger Federer. The message from Zurich is loud and clear: On is no longer just competing with the giants; it is outpacing them. This milestone cements On's status not just as a Swiss success story, but as a dominant force in the global athletic wear hierarchy.

While the Americas remain the fortress of On’s empire, generating a colossal CHF 1.74 billion, the real story of the year is the explosive velocity in the East. Sales in the Asia-Pacific region have nearly doubled, rocketing to CHF 511 million. This dynamic shift signals a critical evolution in the brand's global footprint, proving that the Swiss 'Cloud' technology translates fluently across borders.

The EMEA region (Europe, Middle East, and Africa) is refusing to be left in the dust, posting a robust 32% increase to reach CHF 763 million. However, the sheer ferocity of the Asian market expansion suggests a strategic pivot. On is successfully tapping into the burgeoning demand for premium lifestyle and performance gear in markets that were once dominated by American and German incumbents. The brand is no longer just a Western phenomenon; it is becoming a global obsession.

Footwear may be the foundation, accounting for a massive CHF 2.8 billion of total sales, but On’s apparel division is the dark horse sprinting toward the finish line. The clothing segment witnessed a blistering 68% growth rate, while accessories skyrocketed by an eye-watering 124%. Although these segments currently represent a smaller slice of the revenue pie—CHF 170 million and CHF 40 million respectively—their trajectory is undeniable.

Crucially, On is getting smarter about how it sells. The company credits its improved profitability to a ruthless 'premium strategy.' By slashing discounts and funneling customers through its own direct-to-consumer channels (online and flagship stores), On is keeping a larger share of every franc spent. This disciplined approach drove the adjusted EBITDA margin up from 16.7% to a healthy 18.8%, proving that the brand can scale volume without sacrificing its premium allure.

Despite the operational triumphs, On faces a formidable opponent closer to home: the relentless strength of the Swiss franc. While the adjusted operating result (EBITDA) soared by 46% to CHF 567 million, the bottom line took a hit. Adjusted net profit plummeted by 16% to CHF 266 million, as negative currency effects wiped out operational gains.

This is the double-edged sword of Swiss corporate giants. While the brand performs exceptionally well globally, repatriating those earnings into a strong domestic currency acts as a brake on net earnings. Consequently, shareholders will have to do without a dividend this year. It is a stark reminder that even with record-breaking sales, the macroeconomic environment remains a critical battlefield that On must navigate with precision.

On is not slowing down to catch its breath. The Zurich-based group is projecting extreme confidence for the year ahead, forecasting currency-adjusted sales growth of at least 23% for 2026. This trajectory would push annual sales to a staggering CHF 3.44 billion. The company also anticipates tightening its grip on efficiency, targeting an EBITDA margin between 18.5% and 19%.

For Switzerland, On represents the modern face of Swiss export: innovative, premium, and relentlessly global. As the company races past its 15th year, the question is no longer if it can compete with the legacy sports brands, but how far it will leave them behind. With Roger Federer in its corner and a strategy that balances rapid expansion with premium control, On is lacing up for another record-breaking lap.