In a recent report, Swiss sports specialist On has announced impressive sales growth for the year 2022 and the fourth quarter. The company achieved an annual net sales figure of CHF1.222 billion, surpassing the CHF1 billion milestone for the first time and experiencing a remarkable year-on-year increase of 68.7%. Furthermore, On reported a gross profit margin of 56%, a net income reaching CHF57.7 million (compared to a net loss of CHF170.2 million in the previous year), and a net income margin of 4.7%. The adjusted EBITDA also saw significant growth, rising by 71.4% to CHF165.3 million, with an adjusted EBITDA margin of 13.5%. These outstanding results solidify On’s dedication to sustainable growth and profitability.
Among the highlights of the year, net sales through the Direct-to-Consumer (DTC) channel notably increased by 61.4% to CHF445.1 million. Additionally, wholesale sales experienced a significant spike of 73.1% and reached CHF777 million. On a regional scale, sales in North America saw a substantial rise of 80.3% to CHF738.5 million, while Europe observed a more modest, yet commendable, growth of 36.1% to CHF354.3 million. The Asia-Pacific region witnessed remarkable progress as well, with net sales increasing by 87.7% to CHF80.2 million. Moreover, the Rest of the World region experienced a staggering leap of 310.5%, amounting to CHF49.1 million in net sales. In terms of products, shoes constituted the majority of sales with a figure of CHF1.167 billion. Additionally, apparel sales rose by 30.2% to CHF47.3 million, and accessories saw an increase of 48.3% to CHF7.4 million.
The fourth quarter of 2022 saw a remarkable surge in net sales, climbing by 91.9% to CHF366.8 million. This impressive growth can be attributed to robust demand and strong full-price sales across regions and channels during the holiday season. Parallel to this positive performance, the quarterly profit margin reached 58.5%, showcasing a return to normal operations with the utilization of sea freight as the primary mode of shipment. Notably, On managed to narrow its net loss in the fourth quarter, reducing it from CHF187 million to CHF26.4 million.
Looking forward to 2023, On expresses confidence in achieving continued success. The company aims to achieve net sales of at least CHF1.7 billion, maintaining a stable gross profit margin of approximately 58.5%. Additionally, On anticipates a higher adjusted EBITDA margin of 15%. Martin Hoffmann, the Co-CEO and CFO of On, remains optimistic about the future and emphasizes the significant progress the company has made since its initial public offering (IPO). Hoffmann asserts that On is well-positioned for continued growth, market share gains, and ongoing success. Having overcome challenges such as supply shortages and disrupted global trade lanes in 2022, On enters the new year with momentum and a sense of strength.
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