On records strong first quarter sales and profit growth

On flagship store in Paris Credits: On Running



For its first quarter, On Holding’s net sales increased by 20.9 percent to 508.2 million Swiss francs or by 29.2 percent on a constant currency basis.


Net sales through the direct-to-consumer sales channel increased by 39 percent to 190.5 million Swiss francs or by 48.7 percent on constant currency basis; while wholesale net sales increased by 12.2 percent to 317.7 million Swiss francs or by 19.8 percent on constant currency basis;


Considering the strength of On's DTC channel and commitment to ongoing profitability increases, the company is maintaining its ambition to reach a gross profit margin of around 60 percent and an adjusted EBITDA margin of 16 to 16.5 percent for the full year 2024.


Commenting on the first quarter performance, Martin Hoffmann, co-CEO and CFO of On, said in a statement: “We are thrilled to have exceeded our expectations and surpassed the half-billion net sales mark in a single quarter. The significantly increased DTC share has also allowed us to reach a very strong gross profit margin in the first quarter, close to the mid-term target we laid out a couple of months ago.”


On’s net sales in Europe, Middle East and Africa (EMEA), Americas and Asia-Pacific increased by 6.1 percent to 126.2 million Swiss francs, 22 percent to 329.6 million Swiss francs and 68.6 percent to 52.4 million Swiss francs, respectively. Net sales in EMEA, Americas and Asia-Pacific increased by 10.4 percent, 30.4 percent and 90.7 percent on a constant currency basis, respectively.


Net sales from shoes, apparel and accessories increased by 21 percent to 484.7 million Swiss francs, 16.7 percent to 19.7 million Swiss francs and 36.8 percent to 3.8 million Swiss francs, respectively. Net sales from shoes, apparel and accessories increased by 29.3 percent, 24.9 percent, 42.9 percent on a constant currency basis, respectively.


Gross profit increased by 23.9 percent to 303.3 million Swiss francs, while gross profit margin increased to 59.7 percent. Net income increased by 106 percent to 91.4 million Swiss francs, and net income margin increased to 18 percent.


Basic earnings per share (EPS) increased to 0.28 Swiss francs and diluted EPS also increased to 0.28 Swiss francs. Adjusted EBITDA increased by 27 percent to 77.4 million Swiss francs, while adjusted EBITDA margin increased to 15.2 percent.


Adjusted net income increased to 106.5 million Swiss francs, adjusted basic and diluted EPS increased to 0.33 Swiss francs.


“We are starting 2024 with very high confidence and a whole lot of excitement, achieving record net sales and profitability in the first quarter. Hellen Obiri's win at the marathon in Boston highlights our team's relentless dedication to delivering cutting-edge and sustainable innovations to athletes and consumers alike," added Caspar Coppetti, co-founder and executive co-chairman of On.


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