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Zendaya and Elmo Help On Holdings Exceed Projections in Q4, Year

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What do Zendaya and Elmo have in common? They’re both helping On Holding gain a larger foothold in the global sports world. On Tuesday morning, the Zurich-based sports brand reported that in the fourth quarter ended Dec. 31, net income hit 89.5 million Swiss francs, reversing a loss of 26.8 million Swiss francs in the same period the prior year. Adjusted net income was 107.7 million Swiss francs versus a loss of 16.3 million francs in the prior-year quarter. Net sales in the quarter rose 35.7 percent to 606.6 million Swiss francs. By category, sales of shoes increased 33.6 percent to 568.8 million Swiss francs, while apparel sales rose 77.5 percent to 32.6 million, and accessories were up 80 percent to 5.2 million Swiss francs. Related Articles Fashion Scoops Louis Vuitton Drops New Zendaya Campaign Images for Takashi Murakami Reedition Beauty Features Oddity Surpasses Expectations for Q4 Earnings, Il Makiage Hits $500 Million Milestone Net sales through direct-to-consumer channels were also strong, rising 43.2 percent to 296.2 million Swiss francs, while wholesale sales increased 29.1 percent to 310.4 million Swiss francs. You May Also Like By region, sales in the Europe, Middle East and Africa region were up 31 percent to 147.4 million Swiss francs, while the Americas region rose 28.1 percent to 385.1 million Swiss francs, and Asia-Pacific was up 117.5 percent to 74.1 million Swiss francs. David Allemann, cofounder and executive co-chairman of On, said: “As we celebrate our 15th anniversary and step into our next chapter, we recognize 2024 as a particularly defining moment in On’s history — a year that has not only elevated our presence on the global stage but also captured the hearts of multiple generations. Our partnerships with icons like Roger Federer, Zendaya, and FKA Twigs have propelled On to become a beloved brand, igniting a passion for On that transcends borders and cultures. Our strong performance demonstrates the power of the dreams we’ve dared to dream and the unwavering spirit of our community. Looking ahead, we are filled with a sense of purpose. By continuing to champion innovation, strengthen our core franchises, and foster meaningful connections through life-defining moments, we are confident that On is built to sustain enduring brand love for decades to come —inspiring a movement that celebrates the human spirit.” In an interview with WWD, Allemann said On is now available in 80 countries and its strong results in 2024 “define what we can do in the future.” He said the company is performing ahead of what it had projected and even saw an acceleration in the fourth quarter. Looking ahead, he said the company will work to expand beyond its roots in footwear to become more of a “head-to-toe brand.” He pointed to the strong performance of apparel in the fourth quarter, which outperformed its shoes. And while apparel is still only 5 percent of sales, “we see strong growth and it’s a key element of our strategy” going forward. He also pointed to the DTC business, which now represents nearly half of overall sales, and said that while the gains were driven by the website, the company’s 50 physical stores have become “increasingly important.” Apparel has proven to be a strong performer in the company’s stores. Allemann said the plan is to add another 19 stores this year. He also said that the company’s first Super Bowl commercial, featuring On investor Roger Federer and Elmo of “Sesame Street” fame taking a lighthearted approach to the company’s name, “created buzz and put On in the mouth of everyone around the world.” The company returned to Elmo to help launch its latest campaign for its Cloudsurfer 2 sneaker, Soft Wins, which challenges the idea of going hard and seeks to inspire runners with a softer, more balanced approach. For the year, On reported net income hit 242.3 million Swiss francs from 79.6 million Swiss francs the prior year. Adjusted net income rose to 317.4 million Swiss francs from 112.4 million Swiss francs the prior year. Sales in the year increased 29.4 percent to 2.3 billion Swiss francs from 1.8 billion Swiss francs in 2023, with footwear sales increasing 28.5 percent to 2.2 billion Swiss francs, apparel sales up 46.7 percent to 101 million Swiss francs and accessories sales up 49.5 percent to 17.7 million Swiss francs. Net sales through the DTC channel for the year rose 40.4 percent to 942.8 million Swiss francs and wholesale sales rose 22.8 percent to 1.4 billion Swiss francs. The company also reported that it is tracking ahead of the midterm targets it had outlined at its investor day in 2023 and is now expecting net sales in 2025 to grow at least 27 percent to 2.94 billion Swiss francs with a higher growth rate expected in the first half. Martin Hoffmann, co-chief executive officer and chief financial officer of On, added: “We close this remarkable year with immense pride in all that we’ve accomplished. Exceeding 2.3 billion Swiss francs in net sales and reaching a cash position close to 1 billion Swiss francs are not just milestones but testaments to On’s continued strong momentum, all made possible through the incredible work of our team. In 2024, we witnessed unforgettable moments unfold on the world’s biggest stages and saw a significant increase in global brand awareness, carrying our message of innovation and inspiration to every corner of the world. All of the achievements and unique moments in 2024 give us an incredible amount of energy for 2025. We are excited to launch a firework of new products and deliver an even more premium experience at every touchpoint to our fans. Ultimately building with our community and fans towards becoming the most premium global sportswear brand.”

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