On Holding to grow in Asia & EMEA as North America matures

On Holding AG Accelerates Growth in Asia and EMEA Amid North American Market Maturation

Swiss performance footwear and apparel brand On Holding AG is solidifying its strategic pivot towards the Asia and EMEA regions as the North American market matures. Building on its strong franchise momentum, the company recently reported robust fourth-quarter results and exceeded CHF 3 billion in full-year sales, reinforcing confidence in its regional growth strategy through 2026.

Strong Financial Performance Underscores Growth Potential

On Holding outpaced Wall Street expectations in Q4, delivering stronger-than-anticipated sales performance that contributed to a record-breaking full-year revenue figure surpassing CHF 3 billion. This milestone marks a significant achievement for the Zurich-based company and affirms the effectiveness of its growth initiatives.

Management now projects at least 23% constant-currency sales growth for the current year, highlighting the brand’s accelerating momentum in key markets. These optimistic forecasts reflect both sustained demand for On’s signature sneakers and a growing apparel segment, which together continue to fuel expansion.

Regional Growth Dynamics: Asia and EMEA as Growth Engines

On Holding’s leadership remains clear in its outlook: while North America continues to be a stable revenue base, the region is now characterized as “maturing,” with sales growth expected to stabilize rather than accelerate. This maturity stems from a saturated market where On has firmly established its brand presence and market share.

In contrast, Asia and the EMEA (Europe, Middle East, and Africa) regions are poised to drive the majority of future growth. Rising consumer interest in performance footwear and lifestyle products across these territories presents significant upside potential. On’s strategy emphasizes:

• Localized marketing initiatives tailored to diverse cultural and consumer preferences.
• Strengthening distribution networks and retail partnerships to deepen market penetration.
• Leveraging the popularity of On’s core footwear franchises, which remain the primary sales drivers.

This regional focus aligns with broader industry trends where emerging and expanding markets are becoming critical growth frontiers for premium athletic brands.

Implications for Channel Strategy and Investors

The company’s regional realignment necessitates a recalibrated channel strategy that prioritizes agility and local market expertise. By investing in market-specific campaigns and expanding retail footprints, On aims to enhance brand visibility and customer engagement outside its North American stronghold.

For investors, the updated guidance and strong quarterly results offer a clearer picture of On Holding’s growth trajectory:

• Stable North American revenues provide a reliable financial base.
• Substantial growth opportunities in Asia and EMEA underpin the company’s potential upside.
• The balanced outlook may influence investor expectations around revenue growth rates and risk profiles, mitigating concerns over market saturation in traditional regions.

Looking Ahead

On Holding AG’s ability to exceed CHF 3 billion in sales and maintain a high growth forecast amid shifting regional dynamics signals a successful execution of its global expansion strategy. As the company continues to leverage its strong footwear franchises and invest in localized growth initiatives, it is well-positioned to capitalize on the evolving consumer landscape across Asia and EMEA.

This strategic focus not only reflects market realities but also charts a clear and confident course for On Holding’s next phase of development, promising sustained momentum and value creation for stakeholders in the years ahead.