The news: Consumers’ desire for premium running shoes—and some help from Roger Federer and Zendaya—lifted On Running to its most profitable quarter since going public.

• Net sales rose 35.7% YoY in Q4 to CHF 606.6 million ($688.8 million), outpacing FactSet’s consensus estimate for $660.8 million.
• Gross profit margin increased to a record 62.1%, the highest since Swiss parent On Holding went public in September 2021.

The market opportunity: On—like fellow upstart Hoka and stalwarts like Brooks and Saucony—has been a major beneficiary of the performance running boom thanks to innovative, high-quality products that filled a gap left by Nike and adidas.