On's Winning Sprint in the Sportswear Race

Swiss sportswear brand On is stepping up its game, raising its profit margin forecast following better-than-expected first-quarter sales. The company, known for its innovative sneaker designs, particularly in the running shoe market, attributes much of its success to its collaboration with celebrity ambassador Zendaya.

Sales for the first quarter surged 14.5% to 831.9 million Swiss francs, surpassing analyst projections and prompting a reinterpretation of future profit margins, now expected to reach between 19.5% and 20% by 2026. This adjustment comes as a direct result of successful product launches, notably the Cloudtilt sneaker.

While the robust Swiss franc presented challenges in On's major American market, Asia-Pacific emerged as a strong performer with a 44.4% sales increase. With new leadership at the helm, co-founders David Allemann and Caspar Coppetti have taken over as joint CEOs, bringing fresh perspectives to steer the company forward despite broader economic pressures.

(With inputs from agencies.)