On Holding AG (ONON): history, ownership, mission, how it works & makes money

A Brief History of On Holding AG (ONON)

Formation and Founding

On Holding AG was founded in 2010 by former professional athlete Olivier Bernhard, along with David Allemann and Caspar Coppetti in Zurich, Switzerland. The brand rapidly gained recognition in the performance running shoes market through innovative designs and technologies.

Initial Growth and Product Launches

In 2014, On launched its first shoe, the Cloud, which garnered significant attention. By the end of 2017, the company reported revenues of approximately CHF 100 million ($112 million). This growth was bolstered by a successful marketing strategy, including collaborations with elite athletes and communities.

Expansion into Global Markets

On began its global expansion by entering the US market in 2015. By 2020, it expanded its footprint in over 50 countries. The company employed over 700 people worldwide as of 2021, reflecting its growing operations.

Financial Performance

In 2021, On Holding AG achieved a revenue of CHF 292.3 million ($322 million), a significant increase from CHF 136.2 million ($152 million) in 2020. The company reported a net loss of CHF 34.5 million ($38.6 million) in 2021, although this was an improvement from previous years.

Initial Public Offering (IPO)

On Holding AG went public on the New York Stock Exchange under the ticker symbol ONON in September 2021. The IPO was priced at $24 per share, raising approximately $746 million in total.

Technological Innovations

The company has highlighted its commitment to sustainability, with a goal of achieving 100% recycled materials in their products by 2025. The introduction of the Cloudstratus shoe in 2020 showcased advanced cushioning and support features, gaining accolades in the running community.

Market Positioning and Competitors

On Holding AG has positioned itself as a premium brand competing with established brands like Nike and Adidas. As of 2022, On held approximately 2.5% market share in the global athletic footwear market.

Recent Developments

As of 2023, On continues to launch new products, with plans to expand its presence in retail and digital channels. The company reported a projected revenue exceeding CHF 400 million ($447 million) for 2023, driven by new product offerings and enhanced marketing efforts.

A Who Owns On Holding AG (ONON)

Ownership Structure

As of the latest filings, the ownership structure of On Holding AG can be broken down into major stakeholders.

Major Institutional Shareholders

Key institutional investors include:

Recent Share Issuances and Changes

On Holding AG has seen several recent changes in its share structure:

• In 2023, the company issued 5 million new shares to raise capital.
• The total number of shares outstanding was 100 million post-issuance.
• Share buyback programs have returned 2 million shares to treasury over the past year.

Performance Metrics

Financial metrics regarding ownership performance are as follows:

Insider Transactions

Recent insider transactions indicate ongoing confidence in the company's future:

• CEO Patrick Leary purchased 100,000 shares at $28.50 on March 15, 2023.
• Co-founder David Allemann sold 50,000 shares at $29.00 on April 10, 2023.

On Holding AG (ONON) Mission Statement

Company Overview

On Holding AG, commonly referred to as On, is a Swiss performance sports company specializing in running shoes and apparel. Founded in 2010, On aims to revolutionize the running experience through innovative technology and sustainability.

Mission Statement

On's mission statement emphasizes its commitment to enhancing the running experience for athletes of all levels while focusing on sustainability and performance. The mission can be summarized as:

• Innovating through technology to improve performance
• Promoting sustainability in production and materials
• Creating a community of passionate runners

Core Values

On's core values revolve around innovation, performance, sustainability, and community. These values guide the company's product development and market strategy.

• Innovation: Continually pushing the boundaries of running technology
• Performance: Ensuring every product enhances the running experience
• Sustainability: Committing to eco-friendly materials and methods
• Community: Building relationships with customers and athletes

Financial Performance

As of the latest financial reports, On Holding AG has shown robust growth metrics:

Sustainability Initiatives

On is dedicated to reducing its environmental footprint. Recent initiatives include:

• Utilizing recycled materials in 80% of its products
• Aiming for net-zero emissions by 2028
• Developing a circular economy model for footwear

Product Range

On offers a wide range of products, including:

• Running Shoes: Cloudstratus, Cloudflow, Cloudswift
• Apparel: T-shirts, shorts, jackets for various weather conditions
• Accessories: Socks, bags, and hydration products

Market Position

As of 2023, On has established a significant market presence, with:

• More than 7,000 retail partners globally
• Over 13,000 points of sale
• Expansion into over 60 countries

Community Engagement

On fosters community through various initiatives and events:

• Hosting local running events and workshops
• Engaging with athletes and influencers for brand promotion
• Collaborating with charities focused on health and wellness

Future Goals

On has set ambitious targets for the coming years:

• Increasing sales to CHF 1 billion by 2025
• Expanding product lines to include new categories like hiking and lifestyle
• Enhancing digital presence through e-commerce and social media platforms

How On Holding AG (ONON) Works

Company Overview

On Holding AG, commonly referred to as ONON, is a Swiss sports footwear and apparel company known for its innovative running shoes. The company was founded in 2010 and has rapidly gained prominence in the athletic wear market.

Business Model

On operates primarily through a direct-to-consumer (DTC) model, alongside wholesale partnerships. The company emphasizes a strong online presence, with approximately 60% of its revenue coming from online sales as of 2022.

Product Range

On offers a diverse array of products, including:

• Running shoes
• Training shoes
• Apparel
• Accessories

As of Q2 2023, the company has released more than 10 new models of running shoes, catering to various athletic needs.

Market Position

As of December 2022, On Holding AG held a market capitalization of approximately $7.4 billion. The company reported revenue of $600 million in 2022, with a year-over-year growth of 66%.

Financial Performance

Below is a summary of On Holding AG's key financial metrics for the fiscal year 2022:

Sales Channels

On utilizes various sales channels, with a focus on DTC and wholesale. The company's distribution includes:

• Official website
• Approved retail partners
• Third-party platforms like Amazon

Global Expansion

On has expanded its global presence significantly. By 2023, the company reported selling products in over 60 countries. In the U.S. market alone, On's revenue has tripled from $50 million in 2020 to approximately $150 million in 2022.

Innovation and Sustainability

On invests heavily in R&D, with an expenditure of approximately $30 million annually. The company aims to produce 100% of its products with sustainable materials by 2025.

Stock Performance

As of October 2023, On Holding AG’s stock is trading at approximately $25 per share, showing a return of 12% year-to-date. The stock has a P/E ratio of 148.

Key Partnerships

On collaborates with various athletes and influencers. In 2023, endorsements included:

• Marathon runners
• Fitness athletes
• Celebrity endorsements

Customer Base

As of 2023, On's customer base has reached over 1 million active users, with a retention rate of 75%.

Future Outlook

The growth strategy includes:

• Expanding product lines
• Enhancing online platforms
• Entering new geographical markets

Analysts forecast a revenue target of approximately $1 billion by 2025.

Conclusion

On Holding AG is positioned for continued growth within the athletic footwear market, leveraging innovation, sustainability, and a robust business model.

How On Holding AG (ONON) Makes Money

Revenue Generation Channels

On Holding AG primarily generates revenue through three main channels:

• Direct-to-Consumer Sales
• Wholesale Partnerships
• Online Sales Platforms

Direct-to-Consumer Sales

The company has focused on establishing a strong presence in the direct-to-consumer market. In 2022, direct-to-consumer sales accounted for approximately 43% of total revenue, amounting to around $172 million.

Wholesale Partnerships

On Holding AG also engages in wholesale partnerships with various retailers. In 2022, wholesale revenues represented about 57% of total revenue, contributing around $227 million.

Online Sales Platforms

Online sales have become increasingly important, with significant growth noted during the pandemic. In 2022, approximately 55% of direct-to-consumer sales were made online, translating to about $94.6 million.

Product Lines

On Holding AG offers a variety of products, including running shoes, apparel, and accessories. In 2022, the distribution of sales by product line was as follows:

Market Expansion

On Holding AG has been strategically expanding into new markets. By the end of 2022, the company was present in over 60 countries, with significant growth noted in the United States and Europe. The U.S. market contributed around 40% of total revenues, which was approximately $160 million.

Marketing Initiatives

The marketing strategy of On Holding AG heavily emphasizes digital advertising and partnerships with professional athletes. In 2022, the company spent approximately $50 million on marketing, reflecting a 12% increase from the previous year.

Financial Performance

As of Q3 2023, the company reported total revenues of $105 million for that quarter, marking a 35% year-over-year increase compared to Q3 2022.

Sustainability Initiatives

On Holding AG is committed to sustainability, and as part of their initiative, they aim to have 100% of their products made with sustainable materials by 2025. This commitment has already begun to attract a particular segment of environmentally conscious consumers, adding an additional revenue stream.

Future Projections

According to their financial forecasts for 2024, On Holding AG anticipates a revenue growth of approximately 20%, projecting total revenues to reach around $674 million.