Federer’s On Brand Continues Surge, Challenging Sportswear Giants

August 13, 2024

On, the upstart sportswear company backed by Roger Federer, posted another strong quarter of sales, further solidifying its place as a threat to legacy brands.

The Swiss brand founded in 2010 announced Q2 sales of $657 million on Tuesday, a 27.8% increase over last year, and saw a slight gross profit margin uptick to 59.9%. The growth was fueled by 73.7% growth in the Asia-Pacific region as well as 63% growth in its apparel category.

However, the earnings report wasn’t purely positive for On, as its adjusted earnings per share fell short of Wall Street estimates. The brand faced headwinds in its supply chain that affected direct-to-consumer and wholesale growth, even though both channels saw close to 30% increases versus 2023. FOS