The fast-growing Swiss running footwear company reported net income of CHF 57.7 million ($62.4 million), up from a loss of CHF 170.2 million in 2021, sending the company’s stock up as much as 28 percent in early trading on Tuesday.

Net sales of CHF 1.2 billion in 2022, up 69 percent from the previous year, saw the company pass CHF 1 billion in revenue for the first time in its 13-year history.

The company’s share price is down 30 percent since it listed on the New York Stock Exchange in September 2021.

On has proved resilient to economic headwinds that have hit sales at rivals. Revenue increased by 73 percent in the brand’s wholesale channel, comprised of its 8,700-strong network of retail partners, which range from speciality running stores to luxury fashion names like Dover Street Market, Browns and Kith.

The brand’s growing direct-to-consumer channel contributed CHF 445 million in revenue, up 61 percent from 2021, boosted by flagship store openings in the last year in London, Tokyo, Mexico City and across China.

Supply chain challenges crimped the brand’s profit margin by three percent in the year, but On forecast this would rebound in 2023.  It’s projecting revenue of “at least” CHF 1.7 billion this year.

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Can On Set a New Pace for Sportswear? | Case Study

On hasn’t taken long to turn its unconventional performance-running shoes into one of the world’s most recognisable footwear brands. The Swiss company, launched in 2010, has won credibility with the running elite while cultivating a loyal fashion fanbase, with support from tennis star Roger Federer.