Reporting Q4 and FY21 earnings, Swiss running company On saw 2021 sales grow 70.4%.
With significant expansion planned for 2022, it raised its forecast to hit “at least” $1B in sales this year.
By the numbers:
On has been riding a runner’s high since its September 2021 IPO; its latest figures suggest its brand is still resonating with runners of all abilities:
- Q4 net sales grew increased 53.7%; its North American segment shot up 100.1%.
- In Q4, its apparel business gained 216%; 130.8% on the year.
- Its 2021 sales reached $778.7M, a 70.4% YoY gain.
Between the Lines
Mixing superior design technology, performance, and star power, On has become a contender in the global athletic footwear market set to reach $66B by 2027. Here’s a look at the Swiss running company’s playbook:
Omnichannel: On’s DTC sales grew 76.7% in Q4 and 71.7% on the year. Its wholesale biz grew 69.5% YoY. With strong pre-orders from wholesalers, On expects both channels to expand.
Athlete endorsements: In addition to long-time support from Roger Federer, On grew its Boulder-based professional running team—On Athletics Club—to 1,000 members while outfitting both the Swiss and Norwegian Olympic teams. Last year, the company reached a multi-year sponsorship deal with the Penn Relays.
Distribution: On plans to expand its Nordstrom shop-in-shops in the year ahead while extending its partnerships with REI, JD Sports, and Foot Locker. Freshly inked, DICK’S Sporting Goods will become a distributor this summer.
“Performance all day”: On’s sustainable branding resonates with pro athletes and athleisure enthusiasts alike. In the year ahead, the company will pursue the performance running, outdoor, and lifestyle categories, including launching its first women’s bra.
From the earnings conference call, co-founder David Allemann spoke to the company’s portfolio extensions:
“With 2022 now underway, we are even more confident and excited about the global growth opportunities and many new products that will allow our customers to move.”