It’s On: Upstart Swiss Athletics Brand Outshines Rivals by Treating Sneakers Like Birkin Bags

Core Insights - On, the Swiss sneaker brand, has raised its full-year guidance for the third consecutive quarter, reporting double-digit growth despite challenges faced by other sneaker companies [1] - The company differentiates itself through a unique marketing strategy, positioning its products as luxury items [1] Financial Performance - On's sales increased by 25% year-over-year, reaching 794 million Swiss francs ($995 million) [4] - Net income surged to CHF 142 million ($178 million), nearly tripling from CHF 50 million ($63 million) a year earlier [4] - The company projects net sales of CHF 2.98 billion ($3.76 billion) for 2025, an increase from CHF 2.91 billion [4] Market Position and Strategy - On's shoes are marketed alongside Nike's but are positioned as luxury goods, with prices starting at $170 for the Cloudmonster running shoe line [4] - The company plans to raise prices to continue investing in technology and high-end product designs aimed at affluent, loyal customers [4] - On has gained popularity among influencers and athletes, contributing to its brand recognition and market presence [4] Competitive Landscape - Nike, the largest sneaker company, anticipates a low single-digit percentage decline in sales for the current quarter, with shares down 15% this year [2] - Deckers, which owns Hoka, has revised its sales growth forecast down to low teens for fiscal 2026, a significant drop from 24% the previous year, with shares down 58% this year [3]