The Swiss sporting goods provider On Holding AG presented ambitious growth plans for the coming years on Wednesday. The goal is to double sales by 2026 compared to the current financial year and at the same time increase profitability, the sneaker specialist explained in a statement. On therefore plans to become a “much larger company” through various “strategic building blocks”.
The sports retailer highlighted that in the two years since going public in New York, he had “significantly exceeded” his original targets. He now sees further growth potential for the coming years. This affects both the core business, in which the market share in the running segment is to be further expanded and brand awareness increased, as well as other areas.
The running shoe specialist wants to expand further and expand its range
According to On’s own assessment, it is still “in a very early phase of geographical expansion”. The plan is to expand its presence in China and expand its own retail and wholesale sales.
The sporting goods retailer is also aiming to expand the range to include “selected neighboring categories”. The aim, among other things, is to establish its own training community, strengthen the tennis segment and offer “head-to-toe looks” in all areas, the company explained.
The company confirms its forecasts for the current year
These measures are intended to help increase annual sales to at least 3.55 billion Swiss francs (3.68 billion euros) by 2026. At the same time, the company wants to improve the EBITDA margin adjusted for special effects to at least 18 percent. For the period after 2026, On is targeting annual sales growth in the range of 20 to 25 percent and an adjusted EBITDA margin of over 20 percent.
Management left the forecasts for the current 2023 financial year unchanged. Sales of 1.76 billion Swiss francs and an adjusted EBITDA margin of 15.0 percent are still expected.