(Yicai) Aug. 12 -- Swiss sportswear brand On Holding has said strong sales growth in China has bolstered its faith in the potential of large format stores.

The Chinese market “exceeded our expectations in every channel with a great contribution from our stores and particular strength on Tmall despite our choosing not to participate in promotional activity,” Chief Financial Officer Frank Sluis said on the Zurich-based company’s second-quarter earnings conference call yesterday.

On opened its first store in Macau during the quarter, “which is already matching the strong momentum of our remarkable Hong Kong locations,” Sluis said. “With the widest assortment in the region, the store achieved above-average conversion, reinforcing our conviction in the potential of larger format stores across the region.”

Global net sales rose 14 percent to CHF850.3 million (USD1.05 billion) in the three months ended June 30 from a year earlier, the firm’s quarterly earnings report showed. The growth was led by the extraordinary strength of the direct-to-consumer channel, the company said, with a 26 percent rise in sales. The DTC channel exceeded expectations in every region, it added.

On also promoted Rebecca Kei to chief global markets officer, following her strong performance in the Asia-Pacific markets. The region again delivered more than 20 percent of On’s global net sales, powered by strong momentum in China, Japan, and South Korea.

Editor: Tom Litting