Tennis great Roger Federer has reason to smile this week, not because he has a ton of money and 20 Grand Slam titles.
Back in 2019, Federer inked a partnership with high-end running sneaker brand On. Federer also invested an undisclosed sum (at an undisclosed valuation) in the maker of sneakers with "cloud" soles, and has since worked alongside the brand to develop his own footwear line dubbed "The Roger."
Federer's stake is very likely worth multiples more amid an enthusiastic response to On's IPO debut this week.
Shares rose another 2% to $37.49 on Thursday.
ON now has a $10 billion market cap, a shade above the more established retailer Under Armour at $9.44 billion. Nike remains the king of the space, however — its market cap stands at $250 billion.
"It's great," On co-CEO Marc Maurer said on Yahoo Finance Live about business trends right now.
That indeed appears to be the case.
For the six months ended June 30, sales for the Swiss-based On rose 85% to 315 million francs ($56.49 million). Adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] rose to $47.3 million francs ($8.48 million) from 15.9 million francs ($2.85 million) a year ago.
On is looking to capitalize on the interest in green-friendly apparel and footwear, debuting a $29.99 a month subscription program that recycles a person's sneakers and ships them a new pair. The company also believes the return to office after the pandemic will be a key sales opportunity.
"After the pandemic, we will see people coming back to the office and they are not going to put on their leather shoes. They are going to go in sneakers. They are going to wear their sports clothes," On co-founder and co-executive chairman Caspar Coppetti told Yahoo Finance Live.