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.