“On, the Swiss sportswear and footwear brand endorsed by tennis icon Roger Federer, is embarking on an ambitious journey to further boost its already remarkable sales performance.”
Ahead of an investor event, On said it plans to double sales to $3.85 billion by 2026, citing rapid growth in China, where it expects to bring in more than 10% of its sales by 2026 and beyond.
The company also confirmed its 2023 outlook of $1.93 billion in net sales by year’s end and said it expects to increase its sales of running, tennis, and training shoes by 20% annually in the late decade.
It’s a noble plan, but investors were not impressed, as the stock fell by as much as 9% on Wednesday after the news and dropped another 3.6% on Thursday. On previously promised, its sales would grow nearly 40% this year.
On’s most recent earnings reported net sales of $486.85 million in Q2 2023, its sixth consecutive record top-line quarter.
The Swiss company has gained more notoriety through its athlete endorsement deals: On athlete Hellen Obiri won the women’s Boston Marathon in the spring. American rising tennis star Ben Shelton had an electric run to the semifinals in the 2023 U.S. Open.
