On Earnings + Shoe Loyalty Programs

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Today, we have earnings results from On and the details about Armando Cabral’s new store. Also, we have a deep dive into what's working with shoe loyalty programs.

Here's what you need to know.

On Holdings Surpasses 500 Million Swiss Francs in Q1 Sales, Reveals Second Paris Store

On Holding is gearing up for the Olympics and, in the midst of a global boom in running, is preparing to take a higher profile with a new store on the Champs-Elysees slated to open next month.

The news comes as the trendy Swiss running shoe brand continued its strong momentum, surpassing 500 million Swiss francs in sales for the first time in the first quarter ended March 31. In reporting the results Tuesday, the Zurich-based brand said it achieved sales of 508.2 million Swiss francs, a 20.9 percent increase, or a 29.2 percent jump on a constant currency basis, over the same period last year.

Net income increased by 106 percent to 91.4 million Swiss francs from 44.4 million in the prior year. Adjusted earnings before interest, taxes, depreciation and amortization rose 27 percent to 77.4 million Swiss francs from 61 million the year before.

Martin Hoffmann, co-chief executive officer and chief financial officer, told FN the DTC gains came primarily from the digital channel, but sales at its 50 stores globally also contributed to the gains. On will continue to roll out stores in the second quarter, with units in Milan and Austin, Tex., expected to open next month in addition to the Champs-Elysees unit, which will be its second store in Paris. “We’re growing our network,” Hoffmann said.

Armando Cabral’s New Retail Vision Comes to Life in Rockefeller Center

Armando Cabral is ready for his next adventure, opening the doors to his freshly relocated NYC store earlier this month.

The new shop, located at 620 Fifth Ave. in the Channel Gardens at Rockefeller Center, is just down the street from his previous store at 70 West 50th St., which closed in December.

According to the model-turned-footwear designer, the new store offers a space with a juxtaposition of materials, with organic inspirations from Cabral’s African heritage mixed with the structure of custom USM-designed pieces for a unique and colorful ambiance.

This new store also marks a departure from Cabral’s previous store concept – Armando Cabral Mercado – which featured his product alongside a curation of African-based brands, fine art and design. With this new location, Cabral will instead focus solely on his growing range of product categories including footwear, apparel and fine fragrance.

What’s the Secret to a Great Shoe Loyalty Program?

In 2024, loyalty programs are becoming a big focus for a wider swath of shoe retailers and brands, from brands in the streetwear space to the stores in the family channel.

For example, Under Armour made a major push to launch its UA Rewards program, which surpassed 1 million members in its first few months. Hibbett last year rolled out a connected membership program with Nike after Dick’s Sporting Goods launched a similar program in 2021. Foot Locker is in the midst of rolling out its new and improved loyalty program, which it hopes will help give it access to a broader set of consumer data and more repetitive spend. And Caleres' recently launched Naturalizer Insider loyalty program is already yielding strong spending trends.

What’s more, as discretionary spending remains challenged, loyalty programs offer retailers and brands a better chance at winning more wallet share during an otherwise challenging environment for shoe spending.

Here's how shoe brands are using their loyalty programs to offer members exclusive benefits and win wallet share.

Need more shoe news?

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