On Holding AG has achieved remarkable success in its apparel division, fueled by strategic alliances with influential figures like Zendaya and prestigious fashion houses such as LOEWE. This growth signifies the company's adeptness at merging high performance with contemporary lifestyle, a crucial factor in captivating a younger demographic. The financial performance reflects robust sales figures and an optimistic outlook, demonstrating the efficacy of its brand-building initiatives and its ability to resonate with diverse consumer segments.
Strategic Brand Partnerships Fueling Growth
On Holding AG's apparel business has witnessed an extraordinary surge, with a reported 75.5% growth in sales, driven by synergistic partnerships with the acclaimed actress and style icon Zendaya and the esteemed luxury label LOEWE. This significant expansion was highlighted in the company's recent earnings call for the second quarter of 2025. These collaborations are not merely about product endorsement; they represent a calculated move to position On Holding at the nexus of athletic functionality and high-end fashion, effectively broadening its market appeal and brand relevance.
The strategic decisions to align with Zendaya, a cultural phenomenon with immense influence, and LOEWE, a beacon of luxury, have created a powerful synergy. The LOEWE Cloudtilt collaboration, for instance, saw its premium-priced footwear sell out rapidly, underscoring the success of blending sportswear with upscale design. Similarly, Zendaya's involvement, alongside a training capsule collection with FKA twigs, has substantially elevated brand awareness, particularly among a younger, fashion-conscious audience. This dual approach of leveraging celebrity endorsement and luxury fashion integration has been instrumental in distinguishing On Holding in a competitive market, allowing it to cultivate a strong identity that appeals to both performance-oriented individuals and lifestyle consumers.
Captivating the Next Generation: Gen Z Engagement
A pivotal element of On Holding's recent triumph lies in its compelling engagement with Generation Z consumers. The company's brand strength is notably over-indexing within this demographic, with brand awareness in the U.S. more than doubling over the past year. This exceptional connection with Gen Z highlights the brand's ability to adapt and innovate, creating products and marketing campaigns that resonate deeply with this digitally native and trend-setting cohort. The strategic focus on this segment is positioning On Holding for sustained long-term growth, as these young consumers represent a significant portion of future market demand.
The company's success with Gen Z is not accidental but a result of deliberate efforts to understand and cater to their preferences, including campaigns like the 'Soft Wins' initiative featuring Elmo for the Cloudsurfer. This targeted engagement has fostered a strong brand affinity among younger consumers, who appreciate On Holding's blend of innovation, style, and performance. Furthermore, the company's overall financial health, evidenced by a second-quarter adjusted EBITDA exceeding consensus estimates and an upward revision of its 2025 sales growth guidance, indicates a robust operational foundation. This positive financial trajectory, combined with its strong resonance among diverse demographics, particularly Gen Z, sets On Holding AG on a promising path for continued expansion and market leadership in the global sportswear and apparel industry.