On — the Swiss athletic shoe and apparel brand backed by tennis legend Roger Federer — is charting a daring path to accelerate its already impressive sales growth.
Ahead of an investor event, On said it plans to double sales to $3.85 billion by 2026, citing rapid growth in China, where it expects to bring in more than 10% of its sales by 2026 and beyond.
The company also confirmed its 2023 outlook of $1.93 billion in net sales by year’s end and said it expects to increase its sales of running, tennis, and training shoes by 20% annually in the late decade.
It’s a noble plan, but investors were not impressed, as the stock fell by as much as 9% on Wednesday after the news and dropped another 3.6% on Thursday. On previously promised, its sales would grow nearly 40% this year.
On’s most recent earnings reported net sales of $486.85 million in Q2 2023, its sixth consecutive record top-line quarter.
The Swiss company has gained more notoriety through its athlete endorsement deals: On athlete Hellen Obiri won the women’s Boston Marathon in the spring. American rising tennis star Ben Shelton had an electric run to the semifinals in the 2023 U.S. Open.