On CEO Martin Hoffmann on Q3 Performance, Premium Brand Strategy, and Holiday Sales

Q3 Performance and Growth Strategy

• 💡 On reported a strong Q3 with nearly 35% constant currency growth, signaling a strategic inflection point driven by a focus on building a premium global sportsware brand.
• 🎯 This premium positioning is achieved through investments in product innovation, quality, sustainability, and premium customer experiences in stores and with wholesale partners.
• 🚀 The strategy aims to create customer desire and achieve a superior margin profile, as reflected in the financial results.

Asia Pacific Market Dominance

• 🌏 The Asia Pacific region shows torrid growth, with over 100% growth for four consecutive quarters, particularly strong in China, Korea, Southeast Asia, and Japan.
• 🌟 This success is attributed to the region's strong desire for premium sportsware brands, aligning perfectly with On's market approach.
• 📈 Growth is also robust in the Americas and Europe, underscoring On's status as a global brand.

Market Share and Competitive Landscape

• 🧩 On is expanding the sportsware market by attracting new customers who may not have previously worn athletic apparel, rather than solely competing for existing market share.
• 🤝 The company aims to become a bigger part of customers' lives, from movement sessions to daily wear, by combining performance-rooted products with strong design appeal.

Category Expansion and Future Growth

• 🏃 While strong in running and tennis, On has seen significant growth in its apparel category, which has grown by 100% and is becoming a substantial business.
• 🛍️ The apparel segment, often D2C focused and integrated with retail expansion, drives new customer acquisition and has the potential to become a multi-billion dollar dream.

Holiday Sales and Margin Control

• 🚫 On remains focused on full-price sales throughout the holiday season, eschewing Black Friday discounts, as demonstrated by strong performance during China's Single's Day.
• 💰 The company maintains incredible margin power and a record gross profit margin, even while absorbing most of the tariff impact.
• ✅ On is in a position of full control over its investments, pricing, and costs, which is a strong advantage when experiencing growth and market share gains.