On Plots First Co-Created Footwear and Apparel Collection with Zendaya

The activewear brand On is stepping up its game as it approaches its 15th anniversary, blending celebrity partnerships with strategic growth to fuel impressive sales increases. With a focus on deepening ties with ambassadors like Zendaya, Roger Federer, and FKA Twigs, alongside expanding its wholesale and direct-to-consumer (DTC) channels, On is cementing its place in the competitive athletic apparel market. A highlight of this strategy? An upcoming co-created footwear and apparel collection with Zendaya, set to debut later this year. Here’s how On is driving its success and plotting its next moves.

Financial Triumphs: Double-Digit Sales Growth

On’s recent financial performance showcases its rising dominance:

• Q4 sales jumped 35.7% year-over-year, hitting nearly 607 million Swiss francs (about $690 million).
• Full-year sales climbed nearly 30%, reaching 2.3 billion Swiss francs.
• Profits soared, with a 200%+ increase for the year to 242 million Swiss francs, and the brand turned a profit in Q4 after previous challenges.

These figures underline On’s ability to thrive in a crowded market, balancing growth across both online and physical retail channels.

DTC and Wholesale: Dual Engines of Expansion

On’s growth strategy hinges on a powerful mix of DTC and wholesale success:

• DTC sales surged over 40% in both Q4 and the full year, achieving a record-high share in Q4.
• Wholesale sales rose 29% in Q4 and more than 20% for the full year, reflecting strong partnerships with premium retailers.

Co-founder David Allemann praised these wholesale relationships as “instrumental,” while also emphasizing the role of On’s own stores in boosting the brand’s reach. This dual approach ensures On connects with consumers wherever they shop.

Star Power: Zendaya, Federer, and Beyond

Celebrity collaborations are at the heart of On’s brand-building efforts:

• Roger Federer, a tennis icon, brings global appeal and credibility.
• Zendaya, a fashion-forward actress, is set to launch her first co-created footwear and apparel line with On this year, promising a fresh take on activewear.
• FKA Twigs adds an artistic edge, broadening the brand’s cultural resonance.

These partnerships amplify On’s visibility and attract diverse audiences, with Zendaya’s upcoming collection poised to be a major draw for fashion-savvy consumers.

Global Reach: New Stores and Market Expansion

On is aggressively expanding its physical footprint:

• In 2023, the brand opened 19 new stores, growing its total to nearly 50 worldwide.
• Plans for 2025 include “many more” U.S. locations and new entries into Southeast Asia and the Middle East.
• Long-term, On aims to hit 100 stores, using these spaces to boost its budding apparel line and regional awareness.

Allemann noted, “We’re grateful for our online success, but we know the power of major city centers.” Physical stores are proving vital, with last year’s openings sparking “significant” increases in local brand recognition.

Marketing with a Twist: Positivity Over Grit

On stands out with a unique marketing approach:

• A recent commercial featuring Roger Federer and Elmo highlights the brand’s “positive spirit,” contrasting with competitors like Nike’s intense, limit-pushing campaigns.
• Allemann explained, “In a world obsessed with pushing limits, we encourage runners to embrace soft wins and community.”

This vibe is winning over younger consumers and earning On shelf space at retailers like Dick’s and Foot Locker. Yet, competition looms large, with brands like Vuori and Alo Yoga also carving out space in the activewear arena.

Analyst Optimism: A Bright Future Ahead

Industry experts are taking notice:

• Needham analyst Tom Nikic dubbed On “one of the highest-momentum names” in activewear, citing:
• Rising brand awareness
• Expansion in DTC and wholesale
• A robust margin profile
• A cash-rich balance sheet

Despite challenges from both established giants like Nike and up-and-coming peers, On’s distinct identity and strategic moves signal strong potential for continued growth.

On’s Winning Formula

As On prepares to unveil its Zendaya co-created collection, the brand is firing on all cylinders. With double-digit sales growth, a global store expansion, and a marketing strategy rooted in positivity, On is redefining success in activewear. Whether you’re drawn by Federer’s star power, Zendaya’s style, or the promise of innovative gear, On is a name to watch.