Luxury Briefing: Inside On’s latest play for the luxury-lifestyle crown

The move comes as On’s tennis roster is making headlines: Iga Świątek won her first Wimbledon title in July while wearing the brand’s Roger Pro Tennis Dress ($120) and Roger Pro shoes ($200). Ben Shelton, meanwhile, captured his first Masters 1000 title at the Canadian Open last week while wearing the Performance-T Tennis Polo ($90), Performance-Tennis Shorts ($80) and Roger Pro Clay sneaker ($200). 

For co-founder and executive co-chairman David Allemann, these moments show how performance and style converge. The brand is now outpacing the targets set in its three-year strategy plan announced in late 2023. “Apparel really comes from core performance — but sport is the new fashion,” he told Glossy. “We’re building from core sports into sports fashion in a highly elevated, premium and distinctive way.”

That premium positioning is also evident in On’s luxury collaborations. The mainline Cloudtilt sneaker, starting at $180, is one of nine footwear franchises contributing more than 5% of the brand’s total revenue. The Loewe version is priced at $590.

“The Loewe collaboration is now five years old. We started with footwear and extended it to apparel, and it’s performing very well,” said Allemann. “Both the Loewe Cloudtilt and the mainline Cloudtilt are premium products, but the Loewe treatment allows us to connect with the luxury segment in a different, more distinct way.” He added that fresh input from Loewe’s new creative directors, Jack McCollough and Lazaro Hernandez, will shape the partnership’s next chapter.

The Loewe partnership sits alongside cultural collaborations with names like music artist FKA Twigs, whose training capsule — including the Performance Bra ($80), Running Shorts ($100) and Cloudflow 4 running shoes ($160) — blends technical performance with a distinctive techno aesthetic. 

“Beyond Loewe, we also work with partners like Zendaya and FKA Twigs, branching out into collaborations with the best creative talent in the industry,” Allemann said. On the earnings call, Hoffmann noted that these partnerships are helping to accelerate apparel adoption, with more first- and second-time buyers adding apparel to their purchases.

On’s apparel sales rose 67.5% year-over-year in the first half of 2025 to 36.7 million Swiss francs ($42.1 million), surpassing revenue from the Cloudtilt franchise. “Our apparel business is expanding very fast, and with it, our relevance as a full sportswear brand [is growing],” Allemann said. Hoffmann added that retail stores are key, with apparel sales “well above” 10% of revenue in owned locations versus around 7–8% company-wide.

Direct-to-consumer sales are driving much of the brand’s growth. In the second quarter, DTC sales rose 47.2% year-over-year to 308.3 million Swiss francs, lifting the channel to 41.1% of total sales. APAC revenue jumped 110.9% at constant currency, with Greater China more than doubling, while EMEA grew 46.1% — its best rate in two years — and the Americas rose 23.6%. DTC in the Americas is up nearly 40%. New flagships in Singapore and Chengdu delivered record openings, and store launches are planned this year in Palo Alto, Mexico City, Zurich and two in Seoul.

“When we opened our first New York store, we set ourselves an innovation challenge: remove the pain points of the traditional try-on experience,” said Allemann. “In our stores, every shoe in every size is available behind a ‘magic wall,’ so customers can try the right size within seconds. That maximises the human connection, allowing for meaningful conversations beyond the transaction. This approach, along with premium materials and design, is core to how we communicate our premiumness in-store.”

Financially, On’s model is delivering. Q2 sales hit $854.1 million, up 38.2% at constant currency, with a gross profit margin of 61.5% and an adjusted EBITDA margin of 18.2%. Currency headwinds led to a net loss of $46.6 million, but Hoffmann stressed this “has nothing to do with our financial strength.” On has raised its full-year guidance to at least 31% net sales growth, up from 28%.

The brand is also managing tariff increases. Historically paying a 20% import duty on most U.S.-bound products from Southeast Asia, On now faces 40% tariffs from Vietnam and 39% from Indonesia. During the earnings call, Hoffmann said July 1 U.S. price increases, combined with innovation, a higher DTC mix, economies of scale and supply chain optimization, will offset the impact without compromising quality or experience.

Performance credibility remains central. “We’re not just creating footwear — we’re building iconic franchises,” Allemann said. “Today, we have nine distinct footwear franchises, each contributing more than 5% to our top line. That kind of balance is the result of a years-long strategy to build resilience into our portfolio.” From tennis to trail, training to outdoor, the goal is to expand On’s market while keeping its premium positioning.

“Our vision is to build the most premium global sports brand,” Allemann said. “You’ve seen us go from footwear to apparel, from sports into fashion. That creates the potential for a very high-margin profile — somewhere between a sports brand and a fashion brand.”

StockX report exclusive: Labubu figures and Asics among luxury resale standouts

On Wednesday, StockX dropped its latest Big Facts report, highlighting the brands, products and cultural trends gaining momentum across the resale platform. 

In sneakers, performance labels led the charge: Asics posted 71% year-over-year trade growth, followed by Avia (+63%), Salomon (+53%), Saucony (+51%) and On (+15%). Designer sneakers also continued to gain ground, with top-traded models including the Balenciaga Track Trainers, Gucci Screener Sneakers and Louis Vuitton LV Trainer.

“The popularity of designer sneakers is a natural next step in the proliferation of sneaker culture,” said Brendan Dunne, senior director of customer community and engagement at StockX. “As traditional, sportswear-oriented sneaker culture matured in the 2010s, more fashion houses sought to participate by expanding their footwear offerings to include a wider range of sneakers. To me, the crowd spending big money on luxury sneakers right now isn’t necessarily the core sneakerhead crowd, but an adjacent group that was pulled into the fold by designer brands rather than sportswear companies.”

Beyond footwear, the report spotlights the Labubu collectible craze, with 2.4 million trades to date and average prices up 74.8% year-over-year. It also shows surging interest in Pokémon and Topps trading cards. Apparel highlights include triple-digit growth for brands like Cactus Plant Flea Market and Fear of God, while Arc’teryx led accessories with a 730% spike.

Stat of the week

Chanel is leading the charge in luxury handbag resale. Exclusive Entrupy data from 2022–2024 reveals a striking shift in the value of luxury handbags sold at resale. Chanel led the surge, with average resale prices doubling from $4,573.51 in 2022-2023 to $9,180 in 2024, a more than 100% jump driven in part by the brand’s retail price hikes. Dior bags’ resale value grew 101%, from $2,381.69 to $4,80, in the same period. Louis Vuitton, meanwhile, saw a 7.9% decline, with average resale values slipping from $1,938.08 to $1,786, suggesting softening demand or market oversaturation.

Executive moves

• Michelle Poole, former Crocs brand president, has been named the first brand president of sustainable apparel company Pact, marking her return to the industry after retiring in May 2024.

News to know

• Adidas and designer Willie Chavarría have apologized to the Oaxaca government for cultural appropriation over their “Oaxaca Slip-On,” pledging dialogue and possible compensation to the Yalalag community after officials said the design copied traditional handmade huarache sandals.
• The US and China have extended their trade truce for 90 days, keeping tariffs at 30% and 10%, respectively, until November 10, as both sides continue talks on trade imbalances, market access and technology restrictions amid sharply reduced bilateral trade.
• Kith will stage its first runway show since 2019 on Aug. 17, titled “Institution.” It will feature its fall 2025 collection and upcoming collaborations. Invitations were sent in the form of an Adidas Superstar Black Tie sneaker.
• Burberry’s new “Back to the City” campaign, shot by Angelo Pennetta, centers on a red double-decker bus tour through London’s landmarks. Cast members are shown wearing fall 2025 pieces, including the new Fitzrovia trenchcoat, field jacket, leather bomber and Strand bag.
• Copenhagen Fashion Week’s spring 2026 edition featured 45 brands from across the Nordics, with highlights including Cecilie Bahnsen’s 10th anniversary show. Skall Studio announced profit growth to 5.8 million Danish kroner ($904,220), and 66 North reported double-digit international market gains.

Listen in

On the latest Glossy Podcast, Danny Parisi and Zofia Zwieglinska discuss the British ASA’s ban of two Zara ads over “unhealthily thin” models, over 1,000 employees’ potential Gucci strike, and Capri Holdings’ and Ralph Lauren’s latest updates. Later, Anthropologie’s Anu Narayanan shares why the retailer is spinning off its Maeve label, along with insights on leadership, the timing of the company’s expansion and the importance of embracing new perspectives. Listen here.

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