We rate On as a narrow-moat company based on its brand intangible asset. The company has established itself in the running footwear category with its signature CloudTec soles.
On has emerged from obscurity to become the fastest-growing sportswear brand in the world since the pandemic. Its footwear has rapidly gained share in several markets.
Bears
The sports footwear market is very competitive. On has a shorter history and lower consumer awareness than numerous firms in its industry.
Founded in Switzerland in 2010, sportswear firm On Holding generates more than 90% of its sales from athletic shoes. The brand is best known for its running shoes and its distinctive CloudTec soles. On also produces athletic apparel (6% of 2025 sales) and accessories (1%). The firm’s merchandise is available in more than 80 countries and is sold through both wholesale (58% of sales) and company-owned channels (42%). In 2025, On generated 58% of its sales in North America, 25% in Europe, the Middle East, and Africa, and 17% in the Asia-Pacific region.