On: Q1 sales jump 78.3 percent, raises outlook

On Holding AG reported a net sales increase of 78.3 percent to 420.2 million Swiss francs for the first quarter of 2023.

On is raising its net sales outlook for the full fiscal year ending December 31, 2023 to at least 1.74 billion Swiss francs. Its outlook for gross profit margin is expected to reach 58.5 percent, implying an absolute gross profit of over 1 billion Swiss francs and adjusted EBITDA margin of 15 percent.

Commenting on the first quarter trading, Martin Hoffmann, the company’s co-CEO and CFO said: “Our record net sales in Q1 are a further proof of the strong brand momentum across all regions, channels and product groups. This was supported by a largely normalised supply chain environment versus the first quarter of 2022, which also allowed for the discontinuation of exceptional air freight and corresponding significant gross profit margin improvement.”

On posts growth across markets and product segments

The company said in a release that net sales through the direct-to-consumer (DTC) sales channel increased 64.3 percent to 137 million Swiss francs; while net sales through the wholesale sales channel increased 86 percent to 283.2 million Swiss francs.

The company’s net sales in Europe, Middle East and Africa (EMEA), Americas and Asia-Pacific increased 51.6 percent to 118.9 million Swiss francs, 91.9 percent to 270.2 million Swiss francs and 89.4 percent to 31.1 million Swiss francs, respectively.

By product category, net sales from shoes, apparel and accessories increased 80 percent to 400.5 million Swiss francs, 48.9 percent to 16.9 million Swiss francs and 52.3 percent to 2.8 million Swiss francs, respectively.

Gross profit increased 100.6 percent to 244.9 million Swiss francs and gross profit margin increased to 58.3 percent from 51.8 percent.

The company added that net income increased 209.2 percent to 44.4 million Swiss francs, while net income margin increased to 10.6 percent from 6.1 percent. Basic earnings per share (EPS) increased to 0.14 from 0.05; and diluted EPS increased to 0.14 from 0.04 Swiss francs.

Adjusted EBITDA for the quarter increased 288.2 percent to 61 million Swiss francs, while adjusted EBITDA margin increased to 14.5 percent from 6.7 percent.

Adjusted net income increased to 48.8 million Swiss francs, adjusted basic EPS increased to 0.15 from 0.05; and adjusted diluted EPS increased 0.15 to 0.05 Swiss francs.