Rising to Prominence on Every Foot: This Young Sportswear Brand Nears the Popularity and Financial Success of a Renowned French Luxury House
© Illustrative Image / Reve.art in collaboration with JDF
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In recent years, sportswear brands have become trendier than traditional fashion labels, both in France and internationally. Sporting goods manufacturers have started to outperform the long-standing fashion powerhouses in terms of both popularity and financial metrics. In France, Decathlon and Intersport are now leading in market shares among clothing brands: by the first quarter of 2025, they were the top two brands where the French shopped for their apparel most frequently.
Globally, a similar trend is emerging, with pure sportswear brands reaching heights that rival centuries-old luxury houses. Among these brands, a young label has emerged with “profit margins similar to those of the luxury industry,” closely trailing Hermès in terms of gross margin. In the first quarter of 2026, this label boasted a robust margin of 64.2%, while Hermès recorded a yearly margin of 71.1%. Interestingly, this brand’s main competitors in the sports arena, despite having higher media visibility, showed significantly less impressive financial results. It’s the brand On that stands out with these remarkably positive outcomes.
Known for its high-tech athletic shoes, On was established in Switzerland in 2010 by three enthusiasts, one of whom is an Ironman champion. On prides itself on both its technical prowess and stylish image. It claims to have developed a unique cushioning technology for its sneakers called Cloudtec.
Over the years, the Swiss brand has achieved an incredible level of fashion desirability. Similar to Hoka, which is worn by the French President, On has captured the attention of numerous celebrities (like Oprah Winfrey or FKA Twigs), who now wear their shoes beyond the athletic tracks. This popularity boost was catalyzed by the investment from tennis star Roger Federer in 2019; as well as smart fashion collaborations with haute couture houses like Loewe and style icons such as Zendaya. This year, the actress co-created a collection with the Swiss label.
Like Major Luxury Brands, On Utilizes Levers of Desirability to Achieve Significant Margins
However, in terms of production, the approach is quite different: whereas brands like Hermès rely on age-old artisanal craftsmanship, extremely limited production, and a sense of rarity to increase margins, On bases its strategy on the disparity between affordable production costs and higher selling prices compared to its rivals.
In 2024, the media outlet Le Monde reported that On’s sneakers were purchased in Vietnam at low costs and then sold for up to “twenty times” their original price. These margins were “four times” higher than those of its competitors like Adidas, Nike, or Puma, which also manufacture their shoes in the same Vietnamese factories. However, the pricing of On’s sneakers is justified by the exclusive patented Cloudtec technology, which provides the brand with a unique technical legitimacy and an unmatched competitive edge in its field.
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Olivia Martinez is the Fashion Editor at Lady and The Track, bringing over seven years of experience in the fashion industry. With a background in fashion design and styling, Olivia has worked with top fashion brands and magazines. Her keen eye for trends and styling tips helps readers stay ahead of the fashion curve. Whether she’s covering runway shows or street style, Olivia ensures that Lady and The Track readers are always in the know when it comes to the latest in fashion.