On Exceeds 2024 Expectations and Forecasts Further Growth

Swiss athletic footwear brand On Holding AG surpassed its own forecasts for the 2024 fiscal year. Given the positive results, which the sneaker specialist released on Tuesday, the company has also set ambitious targets for the current year.

Asia-Pacific Revenues Soar by Nearly 85 Percent

In the past fiscal year, sales amounted to 2.32 billion Swiss francs (2.47 billion euros), representing a 29.4 percent increase compared to 2023. Adjusted for currency fluctuations, revenues grew by 33.2 percent.

The key growth driver was direct-to-consumer retail, with an increase of 40.3 percent (currency-adjusted +44.6 percent) to 942.8 million Swiss francs. Wholesale business saw sales rise by 22.8 percent (currency-adjusted +26.3 percent) to just under 1.38 billion Swiss francs.

The most dynamic revenue growth was recorded in the Asia-Pacific region, where sales surged by 84.5 percent (currency-adjusted +95.6 percent) to 260.2 million Swiss francs. In the Americas, sales grew by 27.4 percent (currency-adjusted +31.2 percent) to 1.48 billion Swiss francs. In the EMEA region (Europe, the Middle East, and Africa), revenues reached 577.8 million Swiss francs, an increase of 18.2 percent (currency-adjusted +19.9 percent) compared to the previous year.

On More Than Triples Net Profit

Thanks to the higher proportion of direct-to-consumer sales and disciplined pricing, the gross margin increased from 59.6 to 60.6 percent. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) therefore rose by 40.0 percent to 387.6 million Swiss francs. Reported net profit amounted to 242.3 million Swiss francs (258.6 million euros), more than three times higher than the previous year's figure of 79.6 million Swiss francs.

On's surprisingly strong annual results were due in no small part to a successful final quarter. In Q4, sales increased by 35.7 percent (currency-adjusted +40.6 percent) to 606.6 million Swiss francs. The bottom line showed a net profit of 89.5 million Swiss francs, compared to a loss of 26.8 million Swiss francs in the same period of the previous year.

Company Forecasts Strong Growth for 2025

Following the "exceptional" results of the past year, management anticipates strong growth for 2025 as well. They are forecasting a currency-adjusted sales increase of at least 27 percent to more than 2.94 billion Swiss francs. The adjusted EBITDA margin, which was 16.7 percent in 2024, is expected to increase to between 17.0 and 17.5 percent.