A look at On Running

One of the popular new running brands - On Running - went public a bit more than a year ago. Unlike most other companies producing running shoes and equipment, which are public, On is almost entirely a running business (so far). So, it's a good opportunity to see their performance and draw some observations and comparisons.

On is a billion dollar business

On sales were CHF 725 million in 2021 ($790 million). But they have already hit CHF 527 million for the first half of 2022. Another couple of running brands that became billion dollar businesses are Hoka (also a new brand) and Brooks (a 100-year brand).

It is fast growing

The business grew 67% for the first six months of 2022 as compared to the same period last year. For the whole 2021 fiscal year, the sales were 70% higher than for 2020. That however is not too far off from Hoka, whose sales grew 56% from 2021 to 2022 (to $892 million), and 62% for the year prior.

Wholesale is its larger channel

On has a strong online presence, but it made 62% of its sales in 2021 via its wholesale channel. On that front, its DTC sales make up a higher percentage than those of Hoka, but lower than those of Nike.

Shoes make up the huge part of its business

North America is On's largest market

While On was founded in Switzerland, its largest market is North America.

Thank you for reading,

Momchil