On flagship store in Paris
Photo by On Running

On Holding Reports Strong First Quarter Sales and Profit Growth

On Holding has reported impressive first quarter results, with net sales increasing by 20.9% to 508.2 million Swiss francs, and by 29.2% on a constant currency basis. The company’s direct-to-consumer (DTC) sales channel saw a significant rise, with net sales increasing by 39% to 190.5 million Swiss francs, or by 48.7% on a constant currency basis, told Yahoo. Meanwhile, wholesale net sales grew by 12.2% to 317.7 million Swiss francs, or by 19.8% on a constant currency basis.

Given the strength of On’s DTC channel and commitment to ongoing profitability, the company maintains its goal to achieve a gross profit margin of around 60% and an adjusted EBITDA margin of 16 to 16.5% for the full year 2024, via Investing.

“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,” commented Martin Hoffmann, co-CEO and CFO of On.

Regionally, On’s net sales in Europe, the Middle East, and Africa (EMEA) increased by 6.1% to 126.2 million Swiss francs. In the Americas, sales rose by 22% to 329.6 million Swiss francs, and in the Asia-Pacific region, sales surged by 68.6% to 52.4 million Swiss francs. On a constant currency basis, net sales increased by 10.4% in EMEA, 30.4% in the Americas, and 90.7% in the Asia-Pacific region.

Product-wise, net sales from shoes grew by 21% to 484.7 million Swiss francs, apparel sales increased by 16.7% to 19.7 million Swiss francs, and accessories sales jumped by 36.8% to 3.8 million Swiss francs. On a constant currency basis, these figures reflect increases of 29.3% for shoes, 24.9% for apparel, and 42.9% for accessories.

The company’s gross profit rose by 23.9% to 303.3 million Swiss francs, with a gross profit margin increasing to 59.7%. Net income saw a remarkable increase of 106% to 91.4 million Swiss francs, resulting in a net income margin of 18%. Basic and diluted earnings per share (EPS) both increased to 0.28 Swiss francs. Adjusted EBITDA grew by 27% to 77.4 million Swiss francs, with an adjusted EBITDA margin of 15.2%. Adjusted net income rose to 106.5 million Swiss francs, with adjusted basic and diluted EPS increasing to 0.33 Swiss francs.

Caspar Coppetti, co-founder and executive co-chairman of On, expressed his enthusiasm for the results: “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.”

With these strong first-quarter results, On Holding is well-positioned for continued growth and success in the coming year.

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