Swiss brand On intends to double its net sales by 2026, increase its gross profit margin to above 60 percent and push its adjusted ebitda above 18 percent. On is only forecasting high-single digit wholesale growth in Q4 but Direct-to-Consumer sales are expected to continue their torrid growth pace in the final period and grow in importance in 2024 and beyond. FY23 total revenues are now forecast at CHF1.79 billion, or approximately $2 billion and generate a gross margin of at least 59 percent.

On will be available in about 10,000 wholesale doors by year-end after adding 200 in the U.S. and 50 in Asia-Pacific during Q3. There is a clear focus on expanding distribution in key global retailers going forward, including JD Sports, Foot Locker, and Dick’s Sporting Goods.

In Q3, On net income soared 185 percent to the equivalent of $65.4 million as total sales grew by 46.5 percent to approximately $541.2 million for the period ended Sep. 30. Operating income was 42 percent higher year-over-year to approximately $64.4 million and gross margin increased by 280 basis points to 59.9 percent. DTC sales rose by nearly 55 percent to approximately $183.6 million. Wholesale revenues, meanwhile, increased by 42.6 percent to $351.9 million, helped by early holiday shipments to some accounts. Footwear sales stepped up by 47 percent to $509.4 million, bolstered by the introductions of the Cloudsurfer and Cloudmonster, and apparel sales hit $22.4 million. Quarterly sales in the Americas increased by 60.5 percent year-over-year to $328.8 million.

On, which sees the importance of its DTC continuing to grow, is elevating its marketing spend in Q4. The brand will introduce the Monster Hyper in Spring 2024, a performance athlete version of the Cloudmonster for the DTC and run specialty channels while the Cloudmonster will be targeted to distribution in more mainstream retailers such as Dick’s Sporting Goods.

Last month, On opened its fifth U.S. brand store with a location in Miami. It’s the brand’s 27^th store globally. Chicago, Portland and Austin are slated to be the next U.S. cities with On brand stores.