On Says Its Cloudmonster and Cloudsurfer Sneaker Models Contributed ‘Significantly’ to Growth in Q4
Stephen Garner
Senior Editor
On Holding co-chief executive officer Martin Hoffmann said on Tuesday that the brand’s shoe sales growth continues to be driven by performance running products.
The executive said on the company’s fourth quarter earnings call with analysts that net sales in the period from shoes grew by 33.6 percent to 568.8 million Swiss francs (around $639.9 million based on current exchange rate).
“2024 has been a year of deepening our focus on key franchises,” Hoffmann said. “It clearly paid off in Q4 with the Cloudmonster and Cloudsurfer contributing significantly to the growth.”
The co-CEO added that running is in the brand’s DNA and the company is “extremely excited to continue to drive its market share with a great product lineup in 2025,” which kicked off by the Cloudsurfer 2 launch in February.
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“We’re also extremely excited to further elevate our most iconic all-day silhouette with the launch of the new Cloud 6, after a period of successfully focusing on the diversification of our product portfolio and expanding our performance running share,” Hoffmann said. “The latest iteration of this classic all-day franchise will return to being a significant contributor to growth in 2025 and beyond. While the full-scale launch will happen in a few days, demand from our partners over the past months has been amongst the highest we have seen yet.”
This comes as the Zurich-based sports brand reported that in the fourth quarter ended Dec. 31, net income hit 89.5 million Swiss francs, reversing a loss of 26.8 million Swiss francs in the same period the prior year. Adjusted net income was 107.7 million Swiss francs versus a loss of 16.3 million francs in the prior-year quarter. Net sales in the quarter rose 35.7 percent to 606.6 million Swiss francs.
For the year, On reported sales increased 29.4 percent to 2.3 billion Swiss francs from 1.8 billion Swiss francs in 2023. By category, On noted that footwear sales increased 28.5 percent to 2.2 billion Swiss francs for the year, while apparel sales were up 46.7 percent to 101 million Swiss francs and accessories sales up 49.5 percent to 17.7 million Swiss francs.
Looking ahead, On noted that it is confident in its ability to continue on this path and achieve a constant currency net sales growth rate of at least 27 percent for the full year of fiscal 2025. At current spot rates, this translates to full year reported net sales of at least 2.94 billion Swiss francs.
