Swiss company On Holding, which had a phenomenal 2023 in terms of sales and profitability growth, is promising to unleash a plethora of new products over the next 10 to 24 months and be a player at the Paris Games (including new uniforms for the Swiss National Team) this summer, but it has no intention of adding famed golfer and ex-Nike athlete Tiger Woods to its roster of athletes. On Co-CEOs Martin Hoffmann and Marc Maurer were asked to address a published report about Woods’ future as they commenced the company’s presentation at the 2024 ICR Conference earlier today. On shares closed up 6.1 percent, or $1.63, to close at $28.20 this afternoon.
After Hoffmann confirmed, “Tiger is not going to partner with us,” he turned his attention to the company’s financial objectives of doubling its annual sales by 2026, increasing its adjusted Ebitda to 18 percent or better and achieving a 60 percent or better gross profit margin.
“We want to disrupt the industry and get people moving,” proclaimed Hoffmann before detailing how the brand is broadening its reach from performance running to outdoors, training, tennis, and apparel with adaptations for lifestyle consumers. On, which stands for performance, design, and sustainability, is entering the training category with apparel first rather than footwear.
Maurer confirmed that On’s global brand awareness is still small despite its impressive growth in North America, adding that in France, Italy, South Korea, and Greater China, the market share is “well below” 5 percent. The group intends to expand further into own retail as it maintains its roster of premium-focused retailers and “elevates the cross-channel experience” for its consumers.
Marketing expenditures, aimed at strengthening the On brand with consumers, will be maintained at 11-12 percent of revenues going forward, targeting social media channels including TikTok more with less spending on traditional media, the executives said. Meanwhile, key new products this spring include the Cloud Monster 2, Hyper, Runner 2 and the lifestyle-focused Cloud Tilt.
