Game, set and match for On as tennis move and London store add to momentum

By

Sandra Halliday

Published
May 16, 2023

On, the Swiss running shoe specialist and category disruptor, has reported its Q1 results and said it started the year with “another record net sales quarter ahead of expectations”. It was helped by a more normal supply chain, its new London store and its move into tennis.

Those net sales reached CHF420.2 million (€431m/£375m/$468m), an astonishing growth rate of 78.3% year-on-year, with strength across all regions, channels and product groups. 

And sales through the DTC channel were up 64.3% to CHF137 million, while through the wholesale channel they rose 86% to CHF283.2 million.

EMEA sales rose 51.6% to CHF118.9 million, while the Americas jumped 91.9% to CHF270.2 million and Asia-Pacific 89.4% to CHF31.1 million. 

Meanwhile, shoe sales rose 80% to CHF400.5 million, net sales of apparel rose 48.9% to CHF16.9 million and accessories 52.3% to CHF 2.8 million.

The “significantly improved operational environment and product availability versus the prior year period” contributed to the growth and “allowed On to capture the full momentum of the brand”.

Other impressive figures included a Q1 gross profit margin of 58.3%, up from 51.8%, “reflecting the normalised supply chain environment and the resulting discontinuation of exceptional air freight usage, which had weighed on profitability during the first quarter of 2022”.

It also saw “significant” increases in net income and adjusted EBITDA for the quarter, at CHF 44.4 million (up 209.2%) and CHF61 million (up288.2%), respectively.

And it added that the strong order book for the second half of the year, driven by existing and upcoming product launches, is boosting its confidence in its growth aspirations for 2023. 

As a result, it has raised its full-year outlook for net sales to reach at least CHF1.74 billion.

As well as product launches, it’s been helped recently by strong performances on the part of On athletes, including Hellen Obiri's win at the Boston Marathon and Iga Świątek winning her first Tennis tournament as an On athlete at the Stuttgart Open. 

Martin Hoffmann, Co-CEO and CFO, said: “Our record net sales in Q1 are further proof of the strong brand momentum. We always emphasise the importance of our multi-channel strategy, and we are very happy to see the contributions of our new retail stores. Supported by an exceptionally strong start for our new London store, our own retail net sales more than quadrupled year-over-year. Along with our expansion into Tennis, On is reaching more fans than ever before.”