Premium footwear firms see resilient local demand as overseas biz cools

The growing love of running in the country is helping sustain growth for global sportswear brands, even as the industry's fastest-growing players begin to lose momentum after several years of explosive expansion.

Swiss premium sportswear maker On Holding AG became the latest example after reporting global second-quarter revenue growth of 13.5 percent to 850.3 million Swiss francs ($1.04 billion), its slowest pace since 2024.

Investors erased nearly a fifth off the company's share price after the Aug 11 earnings release as concerns mounted that one of the sector's highest-growth brands is entering a more mature phase.

READ MORE: Sportswear enjoys sprinting sales in China

The slowdown contrasts with continued strength in China, where demand for premium running shoes has remained resilient.

Asia-Pacific revenue rose 54.7 percent on a constant-currency basis during the quarter, led by China, Japan and South Korea, while the region accounted for more than 20 percent of the company's global net sales. Direct-to-consumer revenue climbed 34.3 percent on a constant-currency basis and the gross margin reached a record 65.4 percent.

China has become central to On Holding's long-term strategy. The company now operates more than 80 stores across over 30 Chinese cities and expects to surpass 100 locations by year-end. About half of the 20 to 25 company-operated stores it plans to add each year globally are slated for the country, making it the brand's largest direct retail market.

The country's growing importance is also reflected in On Holding's management reshuffle. Rebecca Cai, who has led the Asia-Pacific business through a sixfold increase in regional revenue over the past six years, will become chief global markets officer in September, overseeing commercial operations across the Americas, Europe, the Middle East, Africa and the Asia-Pacific.

On Holding is also reinforcing its focus on running, the category that built the brand. The company unveiled a new global brand platform in June and plans to refresh its core running lineup over the next 14 months with new models.

The moderation in growth extends beyond On Holding. Deckers Outdoor Corp, owner of Hoka, reported fiscal first-quarter — which ended on June 30 this year — revenue growth of 5.7 percent, while Hoka sales rose 7.7 percent, slowing from 14.5 percent in the previous quarter. Even so, the company reiterated plans to open 20 to 25 company-operated stores annually, with China remaining a priority market for international expansion.

Amer Sports Inc delivered a stronger performance. Its outdoor performance division, home to Salomon, posted 37 percent global revenue growth in the second quarter, driven by continued demand for footwear and apparel. The group's revenue in China climbed 35.5 percent, while direct-to-consumer sales surged 52 percent.

Salomon added 13 net new stores in the Chinese market during the quarter, bringing its total to 315 locations. The company plans to open another 45 stores this year and sees capacity for as many as 400 to 500 locations over time. Executives said the Chinese market remains one of Salomon's most productive and profitable markets, supported by demand across performance running, trail running and lifestyle footwear.

The earnings underscore China's growing role as a growth engine for premium running brands. Euromonitor International said the country's running apparel and footwear market approached 100 billion yuan ($14.84 billion) in 2025, with running shoes accounting for nearly 70 percent of sales. The market is expected to expand, supported by rising race participation, growing specialization among runners and continued investment in product innovation.

ALSO READ: Running shoes market facing competitive race

As the market matures, competition is shifting beyond scale toward technology and product differentiation. Serious runners are increasingly buying multiple pairs of shoes for different training and racing scenarios, while casual consumers continue to fuel demand for premium everyday running shoes that blend performance with lifestyle appeal.

That trend is reshaping the competitive landscape. Alongside established players such as Nike Inc and Adidas AG, premium specialists including On, Hoka, Salomon, Brooks and Saucony are gaining market share by focusing on technical innovation, direct retail and premium positioning.

Contact the writers at wangzhuoqiong@chinadaily.com.cn