On Holdings is upping the ante.
In an investor presentation Wednesday in Zurich, the running shoe and active brand said it intends to double its projected 2023 net sales and increase its adjusted EBITDA margin to 18 percent by 2026.
As reported, On is projecting net sales of 1.76 billion Swiss francs for the fiscal year ended Dec. 31, 2023, with a gross profit margin of at least 58.5 percent and 15 percent adjusted EBITDA margin. Its projections will bring sales to at least 3.55 billion Swiss francs, reflecting a compounded annual growth rate of over 26 percent, a gross profit margin of over 60 percent and an adjusted EBITDA of more than 18 percent by 2026, the company projected.
The bullish forecast comes two years after the Switzerland-based company went public.
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“We are extremely proud and pleased with how we have been able to successfully deliver on our mission and growth strategies over the past two years,” said Marc Maurer, co-chief executive officer. “The strength of our brand and products, our outstanding team and innovation capabilities, as well as the very large addressable market, give us numerous opportunities to grow. We are staying true to our core, with controlled expansion into adjacencies, to continue on our path towards the vision to be the most premium global sportswear brand.”
The company outlined the three pillars that will mark its growth: elevate, expand and establish.
First up is to elevate its market share in running along with its brand awareness, its performance credibility and its sustainability impact, the company said. At the same time, On will work to expand its international footprint by increasing its “premium multi-channel distribution” and its own retail presence as well as its footprint in China.
The company will also aim to establish select adjacencies in tennis and other sports while beefing up its offering of “full head-to-toe looks across all its verticals,” it said.
“We have an exciting product pipeline that includes running, training, and tennis footwear and apparel. Additionally, we believe there are huge opportunities to increase brand awareness and to expand through our multi-channel approach. We are enthusiastic about our continued growth.” said Martin Hoffmann, co-CEO and chief financial officer. “The 2026 targets announced today continue to be above the long-term ambitions shared at the time of the IPO, and we view them as an intermediate step in our ambition to build a much bigger company in the future.”
Long-term goals include increasing its apparel penetration to more than 10 percent of overall sales, while growing its own retail and its China business to the same percentage. And beyond 2026, On is projecting to grow net sales by 20 to 25 percent a year and exceed 20 percent adjusted EBITDA margin.
This story was reported by WWD and originally appeared on WWD.com.
