The news: On Running passed the CHF 1 billion ($1.05 billion) sales mark for the first time in 2022. The sneaker company reported CHF 1.22 billion ($1.28 billion) in revenues and turned a profit of CHF 57.7 million ($60.4 million)—a remarkable achievement for its first full year since going public.
On the road to success: On has quickly become one of the leading performance shoe companies, helped by its association with Roger Federer, whose dual roles as investor and brand ambassador have given the company a boost akin to Michael Jordan’s impact on Nike.
Filling in the gap: Like other sneaker brands, On has been a beneficiary of Nike’s decision to pull back on wholesale in favor of direct sales as retailers like Foot Locker and Dick’s Sporting Goods broaden their brand assortment.
Nike stays bullish: Despite the healthy competition, Nike continues to dominate the sneaker and sportswear industries.
The big takeaway: Upstarts like On and Hoka might not pose much of a threat to Nike right now, but they are a potential stumbling block for adidas as it attempts to regain relevance and revitalize wholesale partnerships.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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