On Holding, the Swiss company that owns On, the performance brand specialized in running and backed by Roger Federer, has announced that it has publicly filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a proposed Initial Public Offering (IPO). The company’s valuation, the number of shares to be offered, and the price range for the proposed offering have not yet been determined. The company has applied to list its common stock on the New York Stock Exchange under the symbol “ONON.” Goldman Sachs, Morgan Stanley and J.P. Morgan are acting as joint lead book-running managers for the proposed offering. The company said that Allen & Company, UBS Investment Bank and Credit Suisse are acting as joint book-running managers. In April of this year, On had reportedly already started preparing for an IPO, as also reported by SGI Europe, but had at the time declined to comment on media reports related to plans for an IPO.
After an initial funding round in April, On was reportedly valued at anywhere between $2 billion and $8 billion. In its statement to the SEC, where it proposes to make an initial placement of $100 million, On said its net sales jumped by 85 percent in the six months ended June 30, 2021, reaching 315.4 million Swiss francs (€294.1m-$345.1m). The gross margin expanded to 59.3 percent, and the company made a net profit of CHF 3,759,000 (€3.50m-$4.12m) against a loss of CHF 33,052,000 in the year-ago period.
Wholesale revenues represented 63.4 percent of the total turnover, with 8,100 retail stores in more than 50 countries across Europe, North America, South America and the Asia-Pacific region offering On products, 1,300 of them through dedicated On shop-in-shops. North America was the biggest market for the brand, accounting for 52 percent of the total revenues, followed by Europe at 41 percent.
For 2020, On has reported a loss of CHF 27,524,000 (€25.7m-$30.1m) on sales that grew by 59 percent to CHF 425.3 million (€396.7m-$465.8m), despite the Covid pandemic, generating a gross margin of 54.3 percent. However, the adjusted Ebitda went up by 66 percent to CHF 50 million (€45.8m-$46.6m). In the previous year, it had made a smaller loss of CHF 1,473,000.
On Running has been boasting a compound average annual growth rate of 85 percent since it was founded in Zurich in 2010 by Olivier Bernhard, David Allemann and Caspar Coppetti to “revolutionize the sensation of running.” It was quick to open a transactional website, which served it well during the pandemic. In January 2013, the company opened its North American headquarters in Portland, Oregon, followed by opening an Asian headquarters in Japan in May 2015, then new offices in Australia, China, and Brazil in September 2018. In China, On has been trading on Tmall and JD.com.
Footwear makes up for about 95 percent of the total turnover, but On has set out to expand its apparel range beyond performance running into the lifestyle segment. It also wants to open more flagship stores in major cities around the world like the one it has in New York City, but it wants to continue to develop in the wholesale channel. Visits to its website jumped by 136 percent to 60 million last year, but only about one million customers made a purchase. The online traffic grew by a further 37 percent in the first half of 2021.
The brand, which originally started with innovative performance footwear, introduced its performance running gear range in July 2016. It then launched its first hiking boot in July 2019. Also, in 2019, Roger Federer joined as a co-entrepreneur. In addition to investing in the company, the tennis star has been acting as a brand ambassador while bringing his experience to help On in the areas of product development, marketing and fan experiences. The first product with Federer’s touch, the Roger Centre Court tennis-inspired sneaker, was released in June 2020.
Today, On delivers footwear, apparel and accessories for high-performance running, outdoor and all-day activities. The brand is available at 8,000 retailers.
