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Swiss shoe brand On is growing rapidly. Sales have increased by $1 billion since it went public two years ago. And strong growth is expected to continue: Sales are expected to double in the next three years to 3.55 billion francs. The company’s vision is to be the world’s highest quality sportswear brand.
While sales are increasing rapidly, the share price is also experiencing ups and downs. Since the spectacular IPO two years ago, the price has fallen by almost half, from $44 to $23. On Holding is currently valued at $7.5 billion (equivalent to 6.7 billion francs). Shortly after the IPO, its market capitalization rose to over $10 billion.
Shares of the sneaker brand are traded on the New York Stock Exchange. Different disclosure regulations apply here than in Switzerland. Among other things, companies are required to provide more detailed information about so-called insider transactions. These include the buying and selling of shares by members of management and board members.
US Securities and Exchange Commission announces transactions
These purported filings from the U.S. Securities Exchange Commission (SEC) show that On executives have sold larger blocks of shares or announced their intention to do so over the past six months. Among other things, two executive co-chairmen and a board co-chairman are also listed.
The first transactions were reported on April 28, 2023. CFO and co-CEO Martin Hoffmann sold $9.1 million worth of shares, according to U.S. stock market information. Other sales were reported the same day: On’s co-CEO Marc Maurer sold $2.3 million worth of shares.
On June 1, co-founder David Allemann sold a block of shares worth $8.2 million. Further sales of ten shares took place in July and September. The last transaction reported to date dates back to October 2. Marc Maurer sold a parcel worth $1.9 million.
Ten directors sold shares worth approximately 50 million francs in total. They initially wanted to sell significantly more shares, the documents show. Many transactions did not take place due to the price being below the specified minimum limit. Ten directors reported share sales totaling over 100 million francs. Half of it was accomplished.
Open: “Nothing unusual”
«Management and individual members of the board sold a small percentage of their shares. Two of the three founders did not make any sales,” writes a spokesperson for ten. The sale is “not out of the ordinary” and could be done “for diversification purposes,” among other things.
And further: “Furthermore, all the founders and members of management hold the vast majority of their assets in the company and are therefore committed to the long-term success of On, not only emotionally but also financially.”
Two years after On Holding, another European shoemaker, Birkenstock, went public on the New York Stock Exchange this week. But the IPO was a flop. The stock fell significantly after the first few days of trading. Founded in 1774, the company started with a price of $41. On Friday, the cost of a share was still $36; with a loss of 12 percent.
This means the company is still valued at $6.8 billion. Observers had previously valued the German company at $11 billion. Oliver Reichert, who has led the company since 2012, says the days before the IPO were difficult. «It was a busy period before the IPO. No one knew whether there would be a shutdown or how the situation would develop,” he told Handelsblatt.
The IPO environment has cooled noticeably recently. Economic concerns and shrinking consumer budgets put pressure on the valuations of fashion companies.
Two years after On Holding, another European shoemaker, Birkenstock, went public on the New York Stock Exchange this week. But the IPO was a flop. The stock fell significantly after the first few days of trading. Founded in 1774, the company started with a price of $41. On Friday, the cost of a share was still $36; with a loss of 12 percent.
This means the company is still valued at $6.8 billion. Observers had previously valued the German company at $11 billion. Oliver Reichert, who has led the company since 2012, says the days before the IPO were difficult. «It was a busy period before the IPO. No one knew whether there would be a shutdown or how the situation would develop,” he told Handelsblatt.
The IPO environment has cooled noticeably recently. Economic concerns and shrinking consumer budgets put pressure on the valuations of fashion companies.
Following the IPO two years ago, On executives were criticized for their high salaries. The three founders and two co-CEOs were paid a total of 83 million francs for 2021. Co-CEO Marc Maurer received the highest salary with 16.9 million francs. Two On managers had to justify their salaries through the SRF program “Gredig Direkt”.
Salaries are high compared to established companies such as Nike, Adidas or Puma. Ten of their bosses earned more than their colleagues at Adidas and Puma combined. Only Nike’s CEO, John Danahoe, has raised more. On’s founders and managers have significantly reduced their salaries for 2022. In total, six members of the administration received 18 million francs. David Allemann was the top earner with 3.9 million francs.
* Business journalist Beat Schmid has worked for many major media companies throughout his career. He writes about financial matters at SonntagsBlick.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
