On Holding AG Dossier
Qualitative Analysis
Business overview
On Holding AG (NYSE: ONON) is a premium global sportswear brand founded in Zurich, Switzerland in 2010. The company is renowned for its proprietary CloudTec cushioning technology, which delivers a unique "running on clouds" sensation. On Holding primarily designs, markets, and distributes high-performance athletic footwear, which accounts for over 90% of its net sales. The brand has successfully expanded its product portfolio to include athletic apparel and accessories. On operates a highly efficient omnichannel distribution model, balancing premium wholesale partnerships with a rapidly growing direct-to-consumer (DTC) channel that includes e-commerce and flagship retail stores. Geographically, North America remains its largest market, followed by Europe, the Middle East, and Africa (EMEA), with the Asia-Pacific (APAC) region representing its fastest-growing expansion frontier.
Research as of 19 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
On is scaling its proprietary LightSpray technology, which uses a robotic arm to spray 1.5 kilometers of specialized filament onto a mold, creating an ultra-lightweight, one-piece shoe upper in just three minutes. This eliminates traditional labor-intensive assembly steps.
Expected impact: A 30-fold increase in global LightSpray production capacity in 2026, enabling nearshore manufacturing in high-cost countries, reducing carbon footprint, and improving gross margins.
On is aggressively expanding its own retail store network and digital channels to increase its DTC sales mix, which carries higher gross margins than wholesale distribution.
Expected impact: Targeting an annual increase of 100 to 200 basis points in DTC share of net sales, driving overall gross margin expansion.
Expanding beyond its core running footwear heritage into premium athletic apparel and lifestyle/fashion categories to capture incremental consumer segments.
Expected impact: Apparel grew 45.1% (57.5% constant currency) in Q1 2026, serving as a key entry point to the brand and expanding the total addressable market.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Strategic Partnerships
On partnered with the Spanish luxury fashion house LOEWE (part of LVMH) to launch the LightSpray Cloudmonster running shoe. This collaboration blends On's technical LightSpray upper and CloudTec sole with LOEWE's premium design aesthetic, strengthening On's positioning in the luxury lifestyle and premium sneaker segments.
Terms: Product-level financial terms and revenue-sharing details were not publicly disclosed.
A multiyear brand partnership with actress Zendaya to extend On's cultural reach, driving brand desirability and lifestyle/apparel category growth globally.
Terms: Financial terms were not publicly disclosed.