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Swiss shoe brand On is growing rapidly. Sales have increased by a billion dollars since it went public almost two and a half years ago. It is now known that co-founder David Allemann, 53, sold another block of shares worth millions in December.
This emerged from a mandatory announcement issued by the US Securities and Exchange Commission (SEC) on Friday. The package contained 172,000 shares and was worth $5.1 million (4.5 million francs), Swiss specialist portal Tippinpoint wrote. In most cases, it is not a good sign if a co-founder wants to get rid of his shares. What are the conditions at the popular Swiss brand?
100 million recorded sales
Shares of the sneaker brand are traded on the New York Stock Exchange. Official information from the company revealed last October that On executives had recorded share sales of over 100 million francs in 2023. In the end only half of it came to the table.
Co-founder Allemann also reported selling shares worth 7.3 million francs last July. Now another one has been added. But that’s not worrying. On the contrary, it is a step towards diversification.
The 4.5 million francs constitute only a small percentage of the shares Allemann holds in On-Holding. Therefore he is still financially dependent on On’s success. Since the sale took place in December, it has no connection to this year’s disaster.
Negative headlines about running shoes
The shoe brand, which is the face of Roger Federer (42), has been in a bad situation lately. Research by consumer magazine “K-Tipp” in January showed that On insists on particularly high margins. Swiss customers pay 190 francs for “Roger Advantage” shoes in the online store. Shoes produced in Vietnam are sold for only 17.86 francs.
A few days later, a request came to remove the Swiss cross from his shoes. The holding has been forced to use the Swiss flag on products released in this country for years. But abroad, Ten shoes still bear the Swiss cross. The request has so far been ignored.
The Swiss company could not escape negative headlines this week either. On Wednesday, it was learned that On had provided false manufacturer information for his shoes; in other cases. All eyes remained on the popular shoe brand. (wgr)
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.
