On Reports Q3 Earnings

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

Today we have earnings results for On and an executive move at K-Swiss. Plus, Cole Haan opens its 500th retail store.

Let's get into it:

Barney Waters Returns to K-Swiss as International Brand President

K-Swiss has a new international brand president, and it’s a familiar face: Barney Waters.

Waters, who previously spent eight years at K-Swiss, has returned to the company to assume the international brand president role. During his time at K-Swiss, Waters was the brand president from 2016-2021, and served as chief marketing officer from 2013-2016. (Waters left the company in 2021 to assume the president role at Garrett Leight California Optical.)

Waters is replacing footwear industry veteran Rob Langstaff, who assumed the K-Swiss international brand president role in March.

Part of a trend: K-Swiss is bringing back Waters at a time when footwear industry leaders are shaking up the C-suite. For instance, VF Corp. announced in October that Kevin Bailey was stepping down as president of Vans, and this month FN learned that Timberland global brand president Susie Mulder is exiting the company. Also this month, PrimaLoft Inc. announced it had hired Anne Cavassa, who most recently served as president of Saucony, as its next president.

On Wants DTC Sales to Outgrow Wholesale

On Holding is making moves to rein in its wholesale presence as the company posts gains in its direct channels.

The Swiss running brand on Tuesday said in its earnings release that it would add fewer additional wholesale doors moving forward as it looks to focus on its existing partners as well as growing its DTC presence through e-commerce and its owned retails stores.

“There will be less incremental [wholesale] doors coming compared to what we already have now and as a result, that growth will come down and we expect to see this in the fourth quarter,” said On co-CEO and CFO Martin Hoffmann told FN in an interview. “At the same time, we expect that our DTC growth rates stay very strong and that we are capturing the customer there.”

Moving forward, On said its goal is to have DTC sales outgrow wholesale. In Q2, the brand’s DTC penetration was 35 percent. While Hoffmann did not outline a specific share target for this channel, he said DTC sales outperforming wholesale is part of the company’s broader plan to achieve at least 3.55 billion Swiss francs in net revenue by 2026.

Exclusive: Cole Haan Has Opened Its 500th Store as It Continues Its Global Expansion

Cole Haan today announced that it has opened its 500th retail store.

The new store is at the Livat Centre in Beijing, located at Beijing Huiju Center, No. 15 Xinning Street Beijing, 100162.

The lifestyle footwear and accessories brand has embarked on an ambitious global expansion over the last decade and now caters to consumers in more than 100 countries, including in locations such as World Trade Center in New York, Emirates Mall in Dubai and Harbour City in Hong Kong, as well as shop-in-shops in Harrods and Selfridges in the United Kingdom and more. The company also operates more than 55 regional and country-specific e-commerce websites across the globe.

Cole Haan said it recently opened its first office in Dubai, UAE to help it support its expanding presence across the globe. The brand also maintains offices and showrooms in New York, Toronto, London, Hong Kong and Tokyo.

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