Tue, May 14th 2024
On Running sprints past a major milestone, exceeding half a billion Swiss francs in quarterly turnover for the first time and doubling profitability.
On Running, the innovative Swiss shoe company, has set a new record in the first quarter of 2024, achieving a turnover exceeding half a billion Swiss francs for the first time. Announced on Tuesday, the company reported a significant 21% increase in sales, reaching 508.2 million Swiss francs. Adjusting for currency fluctuations, the growth rate was an impressive 29%.
The surge in sales was driven largely by the company’s direct-to-consumer (DTC) channels, which saw a remarkable increase of 39% in Swiss francs and 49% at constant exchange rates. The Americas remained On Running’s largest market, where sales rose by 22% to CHF 330 million. However, the Asia-Pacific region displayed the strongest growth momentum, soaring by 69% to reach 52 million Swiss francs. In contrast, the Europe, Middle East, and Africa (EMEA) region experienced more modest growth of 6%, totaling 126 million.
On Running also reported enhanced profitability, attributed primarily to higher DTC sales and more efficient inventory management. The gross profit margin increased to nearly 60%, up from 58% in the previous year. Adjusted operating profit (adj. EBITDA) also grew by 27%, resulting in a margin increase from 14.5% to 15.2%. The net profit for the quarter stood at 91.4 million, more than double the amount from the first quarter of 2023.
Looking forward, On Running, partly owned by tennis legend Roger Federer, confirmed its outlook for the current year. The company anticipates currency-adjusted sales growth of at least 30%, which would correspond to a minimum of 2.29 billion Swiss francs. Additionally, the gross profit margin is expected to stabilize around 60%, with the adjusted EBITDA margin projected to rise between 16.0% and 16.5%.
©Keystone/SDA
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