13-year-old Swiss company On, which completed its first full year as a public company in 2022, is forecasting currency-neutral sales growth of 42 percent this financial year to 1.7 billion Swiss francs (€1.69bn), further gross margin expansion toward its mid-term target of 60 percent, and a 150-basis-point growth in adjusted Ebitda margin to 15.0 percent from 13.5 percent in FY22. Three key areas of focus going forward will be running, tennis and younger consumers.
Scheduled to launch its next generation of cushioning in the Cloud Surfer this week, On Holding reported an operating profit of CHF 14.7 million (€15.0m) against a loss of CHF 177.5 million in Q4 ended Dec. 31. The net loss came in at CHF 26.4 million (€25.9m) against a loss of CHF 187.0 million. The gross margin was flat at 58.5 percent.
Citing demand across all geographic regions with corresponding sales significantly above expectations, the group reported a 92 percent revenue increase to CHF 366.8 million (€359.8m) in Q4. Wholesale revenues increased by 104 percent to CHF 217.3 million (€221.0m), with direct-to-consumer sales rising by 76 percent to CHF 149.4 million (€152.0m). Units sold in Foot Locker doors were said to rise by more than 50 percent during the period. By region, quarterly sales in Europe lifted 81 percent higher to CHF 79.6 million (€81.0m); increased by 82 percent in North America to CHF 242.1 million (€246.2m); and rose by 104 percent in Asia-Pacific to CHF 21.6 million (€22.0m).
For FY22, On produced an operating income of CHF 85.1 million (€84.8m) against a loss of CHF 141.1 million despite 330 basis-point erosion in gross margin to 56.1 percent from 59.4 percent. The annual net profit was CHF 57.7 million (€57.5m) against a loss of CHF 170.2 million. Annual revenues increased by 69 percent to CHF 1.22 billion (€1.23bn) from CHF 724.6 million as DTC sales rose by 61 percent to CHF 445.1 million (€443.4m) and wholesale expanded by 73 percent to CHF 777.0 million (€774.0m). This means the company has surpassed the 1 billion mark (in CHF and €) for the first time in its (short) history.
The group launched a new website and domain (on.com) last year and recently opened a new store on London’s Regent Street. Footwear sales rose by 71 percent year-over-year to CHF 1.17 billion (€1.18bn), with apparel revenues growing by 30 percent to CHF 47.3 million (€47.1m) and accessories increasing by 48 percent to CHF 7.4 million.
Annual sales by region showed 36 percent growth in Europe to CHF 354.3 million (€353.0m); an 80 percent year-over-year improvement in North America to CHF 738.5 million (€735.7m); an 88 percent gain in Asia-Pacific to CHF 80.2 million (€79.9m) and a 311 percent jump in Rest of World sales to CHF 49.1 million (€48.9m).
