On Running’s Record Year: A DTC Strategy Masterclass
In 2025, On Running achieved a milestone by surpassing CHF 3 billion in net sales, signaling its emergence as a premium global sportswear brand. This achievement reflects the brand’s clear vision and execution focused on delivering a premium experience directly to consumers.
Driving Growth: Key Performance & DTC Impact
On Running reported a 30% year-over-year increase in net sales, rising to 35.6% on a constant currency basis. Profitability remains robust with a gross margin of 62.8% and an adjusted EBITDA margin of 18.8%. The direct-to-consumer (DTC) channel played a pivotal role, expanding by 33.7% year-over-year and 39.9% in constant currency terms. This growth outpaced wholesale channels, underscoring the strength and flexibility of On’s DTC model.
Strategic Pillars of On’s Success
The company increased its premium brand presence by expanding to nearly 70 owned retail stores, enhancing customer engagement through physical brand hubs. On Running also transformed into a comprehensive “toe-to-head” brand by growing its apparel and accessories lines, complementing its core footwear offerings. Regionally, the brand demonstrated strong performance in the Asia-Pacific market, contributing significantly to global growth. Its ongoing focus on innovation, such as LightSpray™ technology, supports its premium product execution and market differentiation.
Outlook: Sustaining the Premium Trajectory
Looking ahead, On Running projects a 23% constant currency sales growth in 2026 with continued elevated profitability. The company remains committed to its disciplined approach combining DTC expansion, product diversification, and maintaining a premium brand image. This strategy provides a clear framework for sustained growth and market leadership in the competitive sportswear sector.
