On Reports Another Strong Quarter

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

Today, we're analyzing the most recent earnings report from On. Plus, some retailers are selling Yeezys again and Psudo launches a new sustainable sneaker line.

Here's what you need to know:

On Holding Raises Outlook After Another Record Quarter

On Holding just delivered another round of record results — and its sixth consecutive record quarter of top line growth — in Q2.

Q2 by the numbers:

• Net sales were up 52.3 percent to 444.3 million Swiss francs, or $504 million at current exchange.
• Net income decreased 93.3 percent to 3.3 million Swiss francs, in part due to foreign exchange headwinds.
• Adjusted diluted earnings per share decreased to 0.04 Swiss francs from 0.14 Swiss francs from the prior year.
• North America grew 66.8 percent in Q2.

What stood out? On's growth in North America makes it an?outlier among several other footwear brands?that experienced significant declines in the region this quarter amid inventory excesses and a conservative wholesale environment.

Overall, On said its top five key account partners in the U.S. grew a combined 92 percent in the first half of the year, excluding new business with Dick’s Sporting Goods.

Retailers Are Selling Yeezys as the Brand’s Sell-Through Remains Solid

After distancing themselves from Kanye West and Yeezy last year, some retailers are beginning to start selling Yeezys once again.

Adidas is working with different wholesale partners on its second Yeezy drop as it looks to liquidate its leftover inventory since it ended its Yeezy partnership with Kanye West in October. Adidas said this drop would have more lower-priced products, like the foam runner, and would be spread throughout the lower-margin wholesale channel, as opposed to its first drop that was done entirely through Adidas channels.

You can buy Yeezys here: JD Sports and its Finish Line banner, as well as?Hibbett?Sports, are participating in the newest Yeezy launch, an analyst noted. Currently, JD Sports and Finish Line have Yeezy shoes available on their website.

But not here: Notably, Foot Locker, which stopped selling Yeezy products in October, continues to distance itself from the brand. (There are no Yeezy shoes in the company’s upcoming launches page on its website.)

Psudo Launches an Even More Sustainable Sneaker Line in Partnership With Blumaka

Sustainable sneaker brand Psudo has launched a new category of shoe styles. Called Psudo blu, the accessible collection is made in partnership with Blumaka, an insoles and outsoles manufacturer.

What sets Blumaka apart? Its manufacturing process uses up to 85 percent recycled content by volume for its product. It also uses 4 grams of water per pair, a 99 percent reduction compared to traditional manufacturing.

This process caught Psudo founder Michael Rich’s attention.

While Psudo’s core line is made in the U.S. at its 5,000-sq.-ft factory in Vernon, Calif., the blu collection will be produced near-shore in El Salvador at Blumaka’s solar-powered factory.

Psudo blu launches with a new construction as seen in a skater style slip-on — also designed with the brand’s signature American-made 75 percent recycled water bottle fabric — as well as a mule style sneaker.

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Also ...

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