On the surface, On's margins look more like luxury than sneakers. But can this trend last? As a fashion analyst, I find this question particularly intriguing. The Swiss footwear and apparel company has been making waves with its gross margin, which is hovering closer to the levels seen at luxury brands. This is a significant achievement, considering the industry's reputation for thin margins. But as the company grows, maintaining this new baseline margin rate will be a challenge. In this article, I'll explore the factors driving On's success, the challenges it faces, and the broader implications for the fashion industry. I'll also offer my own perspective on what this means for the future of fashion.
