Swiss running shoe specialist, On, has announced its impressive Q1 results, exceeding expectations with record-breaking net sales. The company experienced a remarkable growth rate of 78.3% year-on-year, reaching CHF420.2 million in net sales. This outstanding performance can be attributed to a more normalized supply chain, the opening of a new retail store in London, and the brand’s expansion into the tennis segment.
Sales through the direct-to-consumer (DTC) channel increased by 64.3% to CHF137 million, while sales through the wholesale channel rose by 86% to CHF283.2 million. The EMEA region saw a sales growth of 51.6% to CHF118.9 million, the Americas surged by 91.9% to CHF270.2 million, and Asia-Pacific reached CHF31.1 million, representing a growth of 89.4%.
Shoe sales played a significant role in On’s success, rising by 80% to CHF400.5 million. Net sales of apparel increased by 48.9% to CHF16.9 million, and accessories saw a growth of 52.3% to CHF2.8 million.
On attributes this impressive performance to the improved operational environment and increased product availability compared to the previous year. The company was able to fully capture the momentum of the brand. The Q1 results also revealed a gross profit margin of 58.3%, up from 51.8%, reflecting the normalized supply chain and the reduction in exceptional air freight usage that had negatively impacted profitability in Q1 2022.
Additionally, On reported significant increases in net income and adjusted EBITDA for the quarter. Net income rose by 209.2% to CHF44.4 million, while adjusted EBITDA increased by 288.2% to CHF61 million.
The strong order book for the second half of the year, driven by upcoming product launches, has further boosted On’s confidence in its growth aspirations for 2023. As a result, the company has revised its full-year outlook and now expects net sales to reach at least CHF1.74 billion.
Furthermore, On has benefited from the success of its sponsored athletes. Hellen Obiri’s victory at the Boston Marathon and Iga Świątek’s win at the Stuttgart Open have further enhanced the brand’s reputation.
Martin Hoffmann, Co-CEO and CFO of On, emphasized the significance of the company’s multi-channel strategy, highlighting the contributions of their new retail stores. The opening of the new London store, in particular, has resulted in a fourfold increase in own retail net sales year-over-year. The expansion into the tennis segment has also allowed On to reach a broader audience.
On’s Q1 results demonstrate the brand’s strong momentum and its ability to thrive in a competitive market. With a solid foundation and ambitious growth plans, On is well-positioned to continue its success in the athletic footwear industry.
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On Announces Q1 Results 2023
On Official Website
