May 14 (Reuters) - On Holding raised its annual sales forecast on Tuesday, after beating quarterly sales expectations, as the sports footwear maker's focus on selling premium priced products and bringing in newer items helped attract customers.


Major sportswear companies have been grappling with dwindling sales after wholesalers in the United States and Europe started to cut back on inventory as higher costs of living limited customer spending on pricey footwear and apparel.

But wholesale retailers have opened up shelf spaces for upstart brands such as On and Deckers Outdoor's Hoka, which have been able to pull in customers through innovative product lines and stay relevant at a time when name brands like Nike and Adidas are taking a hit.


On has launched several products such as Cloudmonster 2, Cloudspark and Cloudsurfer Trail this year in the running and performance shoe category where Nike and Adidas have hugely lagged in innovation, making way for new players to emerge.

On is also opening its own stores and expanding into training and tennis footwear categories, as customers increasingly choose its products even at elevated price levels compared to bigger brands.


"(United States) still very positive is what we see in the sellouts both on our channel as well as with the key account partners," said Martin Hoffmann, co-CEO and CFO, On Holding.

"China is on the right path to deliver the cross aspirations that we have from the region. The product is resonating very strongly with the customer," he added.


On expects full-year 2024 reported net sales of at least CHF 2.29 billion ($2.52 billion), versus its prior expectation of CHF 2.25 billion.

Its first-quarter sales rose 20.9% to CHF 508.2 million, compared with LSEG estimates of CHF 497.4 million.

Quarterly adjusted net income rose to CHF 106.5 million, or CHF 0.33 per share, from CHF 48.8 million, or CHF 0.15 per share a year ago. ($1 = 0.9073 Swiss francs)

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shilpi Majumdar)