On Holding Deliberately Slowed Wholesale Growth to Protect Premium Positioning
Dow Jones
Yesterday
1032 ET - On Holding CFO Frank Sluis says the company deliberately stymied some growth across its wholesale channels during the latest quarter. The Swiss running-shoe maker's direct-to-consumer sales jumped 26% in 2Q, wholesale growth was more moderate, ticking up 4.8%. Sluis says on a call with analysts that the company intentionally limited wholesale shipments to avoid flooding retailers with inventory. By holding back, On aimed to protect the brand's premium pricing in a market where discounts are currently the norm. "It costs us some wholesale growth, but it protects our partners, inventory, health, our premium positioning, and ensures the best position for launching what we believe are outstanding innovations in 2027," Sluis says. On Holding sinks 19%.
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