ON Top of It

ON Top of It

Founded in 2010, ON is a sports apparel and shoe brand established in Zurich, Switzerland. Olivier Bernhard, a retired athlete, envisioned crafting a running shoe that offered a completely different running sensation compared to what was on the market. Early prototypes featured sections of hosepipes attached to the bottom of the shoe.

In their most recent financial report as of September 30, 2023, ON revealed total sales amounting to CHF* 480 million (USD/CHF = 0.915) and a net income of CHF 58 million. Both revenue and net income experienced impressive growth, surging by 47% and 184%, respectively, compared to the corresponding quarter of the previous year. Notably, ON’s gross margin expanded from 57.1% in Q3 2022 to 59.9% in Q3 2023. This expansion was attributed to ON’s strategy of refraining from discounting products to boost sales, coupled with an increased proportion of direct consumer sales through their website.

During their earnings call, ON emphasized a strategic focus on increasing sales through their Direct-to-Consumer (DTC) channel while also nurturing relationships with third-party sellers. Despite being in its relative infancy, ON is gearing up for expansion by diversifying its product lines to captivate a broader customer base. Like many sports brands, ON is leveraging the allure of sports stars to enhance brand recognition. Given ON’s size, they need to use innovative approaches to attract “superstar” athletes. In 2019, they successfully secured Roger Federer as a collaborator by issuing equity to him. ON’s recent successes on the sports field include Helen Obiri winning the Boston Marathon wearing ON CloudTr1 1 and Iga Swaitek who also wears ON shoes on the tennis court.

Retail brands operate in a fiercely competitive environment. They generally require years to establish genuine customer loyalty. To stay competitive, these companies must consistently invest in brand and product development, while maintaining their brand identity.

*CHF = Swiss Francs

On Holdings is held in the Lunar BCI Worldwide Flexible Fund. It is also held by Lunar Capital’s Offshore Portfolio clients.

Key Indicators
Index / Fund / Rate
Start of Year
Last Week
This Week
% Change YTD
Index / Fund / Rate
Start of Year
188.33
Last Week
202.23
This Week
203.05
% Change YTD
7.82% Lunar Capital increasesymbol
Index / Fund / Rate
JSE ALSI
Start of Year
76 893
Last Week
73 423
This Week
73 616 Lunar Capital increasesymbol
% Change YTD
-4.26% Lunar Capital stocktake arrow down
Index / Fund / Rate
NASDAQ Composite
Start of Year
15 011
Last Week
15 991
This Week
15 776 Lunar Capital stocktake arrow down
% Change YTD
5.09% Lunar Capital increasesymbol
Index / Fund / Rate
S&P 500
Start of Year
4 770
Last Week
5 027
This Week
5 006 Lunar Capital stocktake arrow down
% Change YTD
4.94% Lunar Capital increasesymbol
Index / Fund / Rate
Prime Lending Rate
Start of Year
11.75%
Last Week
11.75%
This Week
11.75%
% Change YTD
0.00%
Index / Fund / Rate
USD/ZAR
Start of Year
18.30
Last Week
19.04
This Week
18.87 Lunar Capital stocktake arrow down
% Change YTD
3.11% Lunar Capital increasesymbol
Index / Fund / Rate
EUR/ZAR
Start of Year
20.17
Last Week
20.54
This Week
20.34 Lunar Capital stocktake arrow down
% Change YTD
0.84% Lunar Capital increasesymbol
Index / Fund / Rate
Brent Crude ($'barrel)
Start of Year
76.97
Last Week
81.92
This Week
83.23 Lunar Capital increasesymbol
% Change YTD
8.13% Lunar Capital increasesymbol
Source: Iress

Click here to access your account to view statements, obtain tax certificates, add or make changes to your investments.

Our email address is: [email protected]

Disclosures
Lunar Capital (Pty) Ltd is a registered Financial Services Provider. FSP (46567)
Read our full Disclosure statement: https://lunarcapital.co.za/disclosures/
Our Privacy Notice: https://lunarcapital.co.za/privacy-policy/
The Lunar BCI Worldwide Flexible Fund Fact Sheet  can be read here.
This stocktake is prepared for the clients of Lunar Capital (Pty) Ltd. This stocktake does not constitute financial advice and is generated for information purposes only.

Share article

Latest Posts

JP Morgan and the Fortress Balance Sheet
JP Morgan and the Fortress Balance Sheet
What stressors does JP Morgan see in the economy and how are they positioned.
Balancing the Scale
Balancing the Scale
What are some of the challenges and opportunities companies face when they are already large
Lunar Capital Quarterly Investment & Performance Review - 31 December 2023
Lunar Capital Quarterly Investment & Performance Review – 31 March 2024
Sabir provides an update of the Funds' Performance and Strategy of Lunar Capital as of end March 2024.

Lunar Capital
on Eastwave Radio

Every Wednesday, at 07h45, Sabir chats with Nazia from Eastwave Radio (92.2 fm, live stream on
www.eastwave.co.za) on investing and the markets.

eastwave-radio
Scroll to Top