In reporting strong Q2 results, the Swiss group continues to foresee at least 30 percent constant-currency FY sales growth and an annual gross profit margin of 60 percent with H2 coming in stronger than H1.
On operating profit rose by 18 percent to CHF47.3 million (€49.9m) from CHF39.4 million for the period ended June 30. Ebit was CHF42.7 million compared to a loss of CHF6.7 million as net income soared a whopping 161 percent to CHF30.8 million (€32.5m).
| On - Income | |||
|---|---|---|---|
| 2024 | 2023 | Change | |
| Three months ended June 30 (CHF million) | |||
| Net sales | 567.7 | 444.3 | 27.8% |
| Cost of sales | 227.4 | 179.8 | 26.5% |
| Gross profit | 340.2 | 264.5 | 28.6% |
| SG&A expenses | 292.9 | 225.1 | 30.1% |
| Operating result | 47.3 | 39.4 | 20.1% |
| Financial income | 5.8 | 4.3 | 34.9% |
| Financial expenses | 5.9 | 1.9 | 210.5% |
| Pre-tax | 42.7 | -6.7 | – |
| Tax | 11.8 | -10.0 | – |
| Net income | 30.8 | 3.3 | 833.3% |
| Diluted EPS Class A | 0.09 | 0.01 | 800.0% |
| Diluted EPS Class B | 0.01 | – | – |
| Six months ended June 30 (CHF million) | |||
| Net sales | 1,075.9 | 864.5 | 24.5% |
| Cost of sales | 432.3 | 355.1 | 21.7% |
| Gross profit | 643.6 | 509.4 | 26.3% |
| SG&A expenses | 557.7 | 427.7 | 30.4% |
| Operating result | 85.8 | 81.7 | 5.0% |
| Financial income | 11.2 | 6.4 | 75.0% |
| Financial expenses | 10.8 | 3.6 | 200.0% |
| Pre-tax | 158.5 | 44.8 | 253.8% |
| Tax | 36.3 | -2.9 | – |
| Net income | 122.2 | 47.7 | 156.2% |
| Diluted EPS Class A | 0.37 | 0.15 | 146.7% |
| Diluted EPS Class B | 0.04 | 0.01 | 300.0% |
| Source: On | |||
Constant-currency Q2 sales rose by 29 percent to CHF567.7 million (€598.5m) that included a wholesale segment increase of 29 percent to CHF358.2 million (€377.6m) and Dtc sales improvement of 30 percent to CHF209.4 million (€220.7m).
EMEA sales increased by 22 percent on a constant-currency basis to CHF138.4 million (€145.9m), buoyed by continued momentum in the UK, Germany, Austria and acceleration, from smaller bases, in France, Netherlands, and Belgium. Additionally, there were higher sales of performance running products in Central European markets. The company aims to grow its store base across the region by 5 percent in 2024 instead of 10 percent as in recent years.
| On - Revenue | ||||
|---|---|---|---|---|
| 2024 | 2023 | Change | ||
| Three months ended June 30 (CHF million) | ||||
| Channel | ||||
| Wholesale | 358.2 | 280.8 | 27.6% | |
| DTC | 209.4 | 163.5 | 28.1% | |
| Net sales | 567.7 | 444.3 | 27.8% | |
| Regions | ||||
| EMEA | 138.4 | 113.6 | 21.8% | |
| Americas | 370.0 | 296.6 | 24.7% | |
| Asia-Pacific | 59.2 | 34.1 | 73.6% | |
| Net sales | 567.7 | 444.3 | 27.8% | |
| Categories | ||||
| Shoes | 542.5 | 428.2 | 26.7% | |
| Apparel | 21.9 | 13.4 | 63.4% | |
| Accessories | 3.3 | 2.7 | 22.2% | |
| Net sales | 567.7 | 444.3 | 27.8% | |
| Six months ended June 30 (CHF million) | ||||
| Channel | ||||
| Wholesale | 675.9 | 564.0 | 19.8% | |
| DTC | 399.9 | 300.5 | 33.1% | |
| Net sales | 1,075.9 | 864.5 | 24.5% | |
| Regions | ||||
| EMEA | 264.6 | 232.2 | 14.0% | |
| Americas | 699.7 | 566.8 | 23.4% | |
| Asia-Pacific | 111.6 | 65.5 | 70.4% | |
| Net sales | 1,075.9 | 864.5 | 24.5% | |
| Categories | ||||
| Shoes | 1,027.1 | 828.7 | 23.9% | |
| Apparel | 41.6 | 30.3 | 37.3% | |
| Accessories | 7.1 | 5.4 | 31.5% | |
| Net sales | 1,075.9 | 864.5 | 24.5% | |
| Source: On | ||||
“We clearly see that the brand efforts that we are doing in Europe, especially for France and the UK, are working out,” David Allemann, On Co-founder and Executive Co-Chairman said. “We can also capture that in our own channels. And we are, for example, happy with the partnership we’ve launched with Zalando.
In the Americas, Q2 sales raced forward by 26 percent on a constant-currency basis to CHF370 million (€390.1m) with results negatively impacted by a warehouse transition in Atlanta forecast to continue in H2. In APAC, the group generated an 85 percent sales increase to CHF59.2 million (€62.4m), bolstered by continued strong momentum in China where there are 25 On stores. Additionally, the company said demand exceeded supply in many key markets across the region.
From a product perspective on a constant-currency basis, Q2 shoe sales increased by 28 percent to CHF542.5 million (€571.9m) and rose by 67 percent in apparel to CHF21.9 million (€23.1m). Accessories revenues gained 26 percent to CHF3.3 million (€3.5m).
