On Reports First Quarter 2024 Results
On Holding AG (NYSE: ONON) reported record net sales of CHF 508.2 million in Q1 2024, a 20.9% increase year-over-year, and 29.2% growth on a constant currency basis. This milestone was driven by a 39.0% surge in direct-to-consumer (DTC) sales, contributing to a 59.7% gross profit margin, up from 58.3% last year. Net income more than doubled to CHF 91.4 million, with an adjusted EBITDA of CHF 77.4 million. The company predicts at least 30% net sales growth for 2024, aiming for CHF 2.29 billion in sales. Key regions such as the Americas and Asia-Pacific showed strong growth, while new verticals like Tennis and Training have expanded their market reach.
- Net sales increased by 20.9% year-over-year to CHF 508.2 million.
- Gross profit margin improved to 59.7%, close to the mid-term goal of 60%.
- Net income more than doubled to CHF 91.4 million, up 106%.
- Adjusted EBITDA increased by 27.0% to CHF 77.4 million.
- DTC net sales grew by 39.0%, now making up 37.5% of total net sales.
- Net sales in Americas increased by 22.0%, and Asia-Pacific by 68.6%.
- Net sales from shoes increased by 21.0%, apparel by 16.7%, and accessories by 36.8%.
- Cash and cash equivalents increased by 18.2% to CHF 584.6 million.
- EPS doubled to CHF 0.28 from CHF 0.14.
- Strong performance credibility driven by athlete successes.
- Adjusted EBITDA margin only slightly increased to 15.2% from 14.5%.
- Net working capital increased by 13.5%, indicating higher inventory levels or receivables.
- Dependence on DTC channel growth may pose risks if consumer preferences shift.
- Regional growth disparities, with EMEA showing only a 6.1% increase in net sales.
- Potential exposure to dynamic macroeconomic and consumer environments.
Insights
The first quarter results for On Holding AG demonstrate a significant financial achievement, reflecting robust growth in various revenue streams. The company reported
It's noteworthy that the gross profit margin has increased to
For investors, the steady increase in basic and diluted earnings per share (EPS) to
Critical to note is the cash and cash equivalents increase by
Overall, retail investors can view these results as a positive indication of On Holding AG's strategic execution and market position, balancing aggressive growth with profitability and financial stability.
The notable expansion in On's DTC channel, growing by
Furthermore, On's performance in geographic segments provides a clear view of its global appeal. Net sales in the Americas grew by
From an investor's viewpoint, On's emphasis on new verticals like Tennis and Training, in addition to strong brand moments such as Hellen Obiri's marathon victory, underpins the brand's market penetration strategy. Such actions not only enhance market share but also resonate with the brand's premium positioning, appealing to a broader audience.
Additionally, On's strategic focus on premium execution and innovation aligns well with its goal to become a leading global sportswear brand. The consistent market share gains reflect its effective brand positioning and potential for sustained growth in the sportswear market.
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On kicks off the financial year 2024 with record net sales, surpassing
CHF 500 million in a single quarter for the first time in its history. On's total net sales reachedCHF 508.2 million , a growth of20.9% year-over-year and by29.2% on a constant currency basis. This achievement is led by exceptionally strong demand and momentum in On's direct-to-consumer ("DTC") channel, with DTC net sales growing in the first quarter by39.0% year-over-year and by48.7% on a constant currency basis. -
The significant increase in DTC net sales, which now make up
37.5% of On's total net sales, and efficient inventory management, support On's further expansion of its premium gross profit margin to59.7% . This is an increase from58.3% in the previous year and is close to On's mid-term goal of exceeding60% . -
In line with On's goal of achieving substantial growth and continuous profitability expansion, the increased gross profit margin has resulted in a record high quarterly net income and significant adjusted EBITDA expansion, reaching
CHF 91.4 million andCHF 77.4 million , respectively. -
The continued high demand for the On brand provides further confidence in the stated goals for 2024 and beyond. On reiterates its full year expectation of at least
30% growth in net sales on a constant currency basis, which translates to reported net sales of at leastCHF 2.29 billion at current spot rates. On further continues to expect a gross profit margin of around60% and an adjusted EBITDA margin in the range of 16.0 -16.5% for the full year 2024. -
Supported by On athlete successes such as Hellen Obiri's second consecutive win at the marathon in
Boston , On's increasing performance credibility continues to lead to significant market share gains with runners around the globe. At the same time, initial launches in newer verticals such as Tennis and Training are expanding On's addressable market on its mission to be the most premium global sportswear brand.
Martin Hoffmann, Co-CEO and CFO of On, said: “The first quarter was a very strong start to the year and a further step in the execution of our long-term strategy to be the most premium global sportswear brand. We are thrilled to have exceeded our expectations and surpassed the half-billion net sales mark in a single quarter. This serves as a validation of the strong demand we have experienced across all channels, regions, and product categories. Notably, we see the strength in our DTC channel as a clear marker of the ongoing strong brand momentum. The significantly increased DTC share has also allowed us to reach a very strong gross profit margin in the first quarter, close to the mid-term target we laid out a couple of months ago. Looking ahead, we're extremely excited for the months to come, filled with groundbreaking innovations, big partnerships, and the opportunity to have a notable impact in
Caspar Coppetti, Co-Founder and Executive Co-Chairman of On, said: “We are starting 2024 with very high confidence and a whole lot of excitement, achieving record net sales and profitability in the first quarter. Hellen Obiri's win at the marathon in
Key Financial Highlights
Key highlights for the three-month period ended March 31, 2024 compared to the three-month period ended March 31, 2023 include:
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net sales increased by
20.9% toCHF 508.2 million , or by29.2% on a constant currency basis; -
net sales through the direct-to-consumer (“DTC”) sales channel increased by
39.0% toCHF 190.5 million , or by48.7% on constant currency basis; -
net sales through the wholesale sales channel increased by
12.2% toCHF 317.7 million , or by19.8% on constant currency basis; -
net sales in
Europe ,Middle East andAfrica (“EMEA”),Americas andAsia-Pacific increased by6.1% toCHF 126.2 million ,22.0% toCHF 329.6 million and68.6% toCHF 52.4 million , respectively; -
net sales in EMEA,
Americas andAsia-Pacific increased by10.4% ,30.4% and90.7% on a constant currency basis, respectively; -
net sales from shoes, apparel and accessories increased by
21.0% toCHF 484.7 million ,16.7% toCHF 19.7 million and36.8% toCHF 3.8 million , respectively; -
net sales from shoes, apparel and accessories increased by
29.3% ,24.9% ,42.9% on a constant currency basis, respectively; -
gross profit increased by
23.9% toCHF 303.3 million fromCHF 244.9 million ; -
gross profit margin increased to
59.7% from58.3% ; -
net income increased by
106.0% toCHF 91.4 million fromCHF 44.4 million ; -
net income margin increased to
18.0% from10.6% ; - basic earnings per share (“EPS”) Class A (CHF) increased to 0.28 from 0.14;
- diluted EPS Class A (CHF) increased to 0.28 from 0.14;
-
adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") increased by
27.0% toCHF 77.4 million fromCHF 61.0 million ; -
adjusted EBITDA margin increased to
15.2% from14.5% ; -
adjusted net income increased to
CHF 106.5 million fromCHF 48.8 million ; - adjusted basic EPS Class A (CHF) increased to 0.33 from 0.15; and
- adjusted diluted EPS Class A (CHF) increased to 0.33 from 0.15.
Key highlights as of March 31, 2024 compared to December 31, 2023 included:
-
cash and cash equivalents increased by
18.2% toCHF 584.6 million fromCHF 494.6 million ; and -
net working capital was
CHF 562.9 million as of March 31, 2024, which reflects an increase of13.5% compared to December 31, 2023.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis are non-IFRS measures used by us to evaluate our performance. Furthermore, we believe these non-IFRS measures enhance investors' understanding of our financial and operating performance from period to period because they enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS. For a detailed description and a reconciliation to the nearest IFRS measure, see the section below titled “Non-IFRS Measures.”
Outlook
On has experienced continued strong demand across channels, regions and product categories in the first months of its third full financial year as a public company. Delivering a further record quarter, On has for the first time surpassed
On continues on its Dream On strategy and looks to further increase the global awareness for the On brand, and build even closer connections with existing fans and new audiences globally through the power of a seamless omni-channel experience. Significant brand moments and exciting product launches in the coming months are expected to pave the way for the next growth phase on On's vision to be the most premium global sportswear brand.
The ongoing strong brand momentum provides On with confidence to reiterate its full year expectation of at least
Considering the strength of On's DTC channel and commitment to ongoing profitability increases, On is further maintaining its ambition to reach a gross profit margin of around
Other than with respect to IFRS net sales and gross profit margin, On only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. As a result, we are not able to forecast with reasonable certainty all deductions needed in order to provide a reconciliation to net income. The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below and in our filings with the
High-res images available for download here.
Conference Call Information
A conference call to discuss first quarter results is scheduled for May 14, 2024 at 8 a.m. US Eastern time (2 p.m. Central European Time). Those interested in participating in the call are invited to dial the following numbers:
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+1 646 307 19 63 |
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+44 203 481 42 47 |
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+41 43 210 51 63 |
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No access code necessary. |
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Additionally, a live webcast of the conference call will be available on the Company's investor relations website and under this link. Following the conclusion of the call, a replay of the conference call will be available on the Company's website.
About On
On was born in the Swiss Alps in 2010 with the mission to ignite the human spirit through movement – a mission that still guides the brand today. Fourteen years after market launch, On delivers industry-disrupting innovation in premium footwear, apparel and accessories for high-performance running, outdoor, training, all-day activities and tennis. On’s award-winning CloudTec innovation, purposeful design and groundbreaking strides within the circular economy have attracted a fast-growing global fan base – inspiring humans to explore, discover and Dream On.
On is present in more than 60 countries globally and engages with a digital community on www.on.com.
Non-IFRS Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis are financial measures that are not defined under IFRS. We use these non-IFRS measures when evaluating our performance, including when making financial and operating decisions, and as a key component in the determination of variable incentive compensation for employees. We believe that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures enhance investor understanding of our financial and operating performance from period to period, because they exclude share-based compensation which is not viewed by management as part of our ongoing operations and performance, enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. In particular, we believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income and net working capital are measures commonly used by investors to evaluate companies in the sportswear industry.
However, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS and may not be comparable to similarly titled non-IFRS measures used by other companies. The tables below reconcile each non-IFRS measure to its most directly comparable IFRS measure.
As noted above, we do not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The amount of these deductions may be material and, therefore, could result in projected net income being materially less than projected adjusted EBITDA. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this press release.
Net sales on a constant currency basis is a non-IFRS financial measure and should be viewed as a supplement to our results under IFRS. Net sales on a constant currency basis represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales within our results, to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations.
Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the
Among other things, On’s quotations from management in this press releases and other written materials, as well as On’s strategic and operational plans, contain forward-looking statements. On may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management.
Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified under the section titled “Risk Factors” in our Annual Report. These risks and uncertainties include factors relating to: the strength of our brand and our ability to maintain our reputation and brand image; our ability and the ability of our independent manufacturers and other suppliers to follow responsible business practices; our ability to implement our growth strategy; the concentration of our business in a single, discretionary product category, namely footwear, apparel and accessories; our ability to continue to innovate and meet consumer expectations; changes in consumer tastes and preferences including in products and sustainability, and our ability to connect with our consumer base; our generation of net losses in the past and potentially in the future; our limited operating experience in new markets; our ability to open new stores at locations that will attract customers to our premium products; our ability to compete and conduct our business in the future; health epidemics, pandemics and similar outbreaks, including the COVID-19 pandemic; general economic, political, demographic and business conditions worldwide, including geopolitical uncertainty and instability, such as the
Source: On
Category: Earnings
Consolidated Financial Information
Consolidated Interim Statements of Income (unaudited)
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|
Three-month period ended March 31, |
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(CHF in millions) |
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2024 |
|
2023 |
||
|
|
|
|
|
||
|
|
|
|
|
||
Net sales |
|
508.2 |
|
|
420.2 |
|
Cost of sales |
|
(204.9 |
) |
|
(175.3 |
) |
Gross profit |
|
303.3 |
|
|
244.9 |
|
Selling, general and administrative expenses |
|
(264.8 |
) |
|
(202.6 |
) |
Operating result |
|
38.5 |
|
|
42.3 |
|
Financial income |
|
5.4 |
|
|
2.1 |
|
Financial expenses |
|
(4.9 |
) |
|
(1.7 |
) |
Foreign exchange result |
|
76.8 |
|
|
8.8 |
|
Income before taxes |
|
115.8 |
|
|
51.5 |
|
Income taxes |
|
(24.4 |
) |
|
(7.1 |
) |
Net income |
|
91.4 |
|
|
44.4 |
|
Earnings per share |
|
|
|
|
||
|
|
|
|
|
||
Basic EPS Class A (CHF) |
|
0.28 |
|
|
0.14 |
|
Basic EPS Class B (CHF) |
|
0.03 |
|
|
0.01 |
|
|
|
|
|
|
||
Diluted EPS Class A (CHF) |
|
0.28 |
|
|
0.14 |
|
Diluted EPS Class B (CHF) |
|
0.03 |
|
|
0.01 |
|
Consolidated Interim Balance Sheets (unaudited)
(CHF in millions) |
|
3/31/2024 |
|
12/31/2023 |
||
|
|
|
|
|
||
|
|
|
|
|
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Cash and cash equivalents |
|
584.6 |
|
|
494.6 |
|
Trade receivables |
|
290.1 |
|
|
204.8 |
|
Inventories |
|
365.3 |
|
|
356.5 |
|
Other current financial assets |
|
31.5 |
|
|
34.2 |
|
Other current operating assets |
|
88.6 |
|
|
61.2 |
|
|
|
|
|
|
||
Current assets |
|
1,360.1 |
|
|
1,151.3 |
|
|
|
|
|
|
||
Property, plant and equipment |
|
97.7 |
|
|
93.6 |
|
Right-of-use assets |
|
311.0 |
|
|
214.0 |
|
Intangible assets |
|
63.1 |
|
|
64.6 |
|
Deferred tax assets |
|
55.1 |
|
|
69.5 |
|
|
|
|
|
|
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Non-current assets |
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526.8 |
|
|
441.7 |
|
|
|
|
|
|
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Assets |
|
1,886.9 |
|
|
1,593.0 |
|
|
|
|
|
|
||
Trade payables |
|
92.5 |
|
|
65.1 |
|
Other current financial liabilities |
|
73.8 |
|
|
53.4 |
|
Other current operating liabilities |
|
209.1 |
|
|
156.4 |
|
Current provisions |
|
14.6 |
|
|
7.1 |
|
Income tax liabilities |
|
19.1 |
|
|
23.5 |
|
|
|
|
|
|
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Current liabilities |
|
409.1 |
|
|
305.6 |
|
|
|
|
|
|
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Employee benefit obligations |
|
2.6 |
|
|
2.2 |
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Non-current provisions |
|
10.9 |
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|
10.0 |
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Other non-current financial liabilities |
|
272.9 |
|
|
190.3 |
|
Deferred tax liabilities |
|
8.7 |
|
|
10.5 |
|
|
|
|
|
|
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Non-current liabilities |
|
295.1 |
|
|
212.9 |
|
|
|
|
|
|
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Share capital |
|
33.5 |
|
|
33.5 |
|
Treasury shares |
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(26.7 |
) |
|
(26.7 |
) |
Capital reserves |
|
1,152.9 |
|
|
1,140.8 |
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Other reserves |
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(4.9 |
) |
|
(9.8 |
) |
Retained earnings / (losses) |
|
28.0 |
|
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(63.3 |
) |
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|
|
|
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Equity |
|
1,182.8 |
|
|
1,074.5 |
|
|
|
|
|
|
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Equity and liabilities |
|
1,886.9 |
|
|
1,593.0 |
|
Consolidated Interim Statements of Cash Flow (unaudited)
|
|
Three-month period ended March 31, |
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(CHF in millions) |
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2024 |
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2023 |
||
|
|
|
|
|
||
|
|
|
|
|
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Net income |
|
91.4 |
|
|
44.4 |
|
Share-based compensation |
|
9.8 |
|
|
2.3 |
|
Employee benefit expenses / (income) |
|
0.5 |
|
|
(3.3 |
) |
Depreciation and amortization |
|
22.1 |
|
|
13.8 |
|
Loss on disposal of assets |
|
— |
|
|
0.3 |
|
Interest income and expenses |
|
(2.1 |
) |
|
(0.9 |
) |
Net exchange differences |
|
(72.5 |
) |
|
(8.9 |
) |
Income taxes |
|
24.4 |
|
|
7.1 |
|
Change in provisions |
|
7.8 |
|
|
3.2 |
|
Change in working capital |
|
(24.4 |
) |
|
(107.2 |
) |
Trade receivables |
|
(71.9 |
) |
|
(61.6 |
) |
Inventories |
|
21.5 |
|
|
(64.9 |
) |
Trade payables |
|
26.0 |
|
|
19.3 |
|
Change in other current assets / liabilities |
|
33.5 |
|
|
48.9 |
|
Interest received |
|
5.2 |
|
|
2.0 |
|
Income taxes paid |
|
(14.7 |
) |
|
(2.1 |
) |
Cash inflow / (outflow) from operating activities |
|
81.0 |
|
|
(0.6 |
) |
|
|
|
|
|
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Purchase of tangible assets |
|
(8.0 |
) |
|
(8.6 |
) |
Purchase of intangible assets |
|
(1.1 |
) |
|
(1.2 |
) |
Cash outflow from investing activities |
|
(9.1 |
) |
|
(9.7 |
) |
|
|
|
|
|
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Payments of lease liabilities |
|
(11.7 |
) |
|
(4.9 |
) |
Sale of treasury shares related to share-based compensation |
|
1.7 |
|
|
2.2 |
|
Interest paid |
|
(3.1 |
) |
|
(1.0 |
) |
Cash (outflow) from financing activities |
|
(13.1 |
) |
|
(3.8 |
) |
|
|
|
|
|
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Change in cash and cash equivalents |
|
58.8 |
|
|
(14.1 |
) |
Cash and cash equivalents balance at beginning of the year |
|
494.6 |
|
|
371.0 |
|
Net impact of foreign exchange rate differences |
|
31.1 |
|
|
4.4 |
|
Cash and cash equivalents balance at end of the period |
|
584.6 |
|
|
361.3 |
|
Reconciliation of Non-IFRS measures
Adjusted EBITDA and Adjusted EBITDA Margin
The table below reconciles net income to adjusted EBITDA for the periods presented. Adjusted EBITDA margin is equal to adjusted EBITDA for the period presented as a percentage of net sales for the same period.
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Three-month period ended March 31, |
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(CHF in millions) |
|
2024 |
|
2023 |
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% Change |
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
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Net income |
|
91.4 |
|
|
44.4 |
|
106.0 |
% |
Exclude the impact of: |
|
|
|
|
|
|
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Income taxes |
|
24.4 |
|
|
7.1 |
|
244.3 |
% |
Financial income |
|
(5.4 |
) |
|
(2.1) |
|
156.7 |
% |
Financial expenses |
|
4.9 |
|
|
1.7 |
|
186.1 |
% |
Foreign exchange result |
|
(76.8 |
) |
|
(8.8) |
|
773.0 |
% |
Depreciation and amortization |
|
22.1 |
|
|
13.8 |
|
60.6 |
% |
Share-based compensation (1) |
|
16.8 |
|
|
4.9 |
|
240.9 |
% |
Adjusted EBITDA |
|
77.4 |
|
|
61.0 |
|
27.0 |
% |
Adjusted EBITDA margin |
|
15.2 |
% |
|
|
|
5.0 |
% |
(1) Management excludes share-based compensation expenses as we do not consider these expenses reflective of our ongoing operations and performance.
Adjusted Net Income, Adjusted Basic EPS and Adjusted Diluted EPS
We use adjusted net income, adjusted basic EPS and adjusted diluted EPS as measures of operating performance in conjunction with related IFRS measures.
Adjusted basic EPS is used in conjunction with other non-IFRS measures and excludes certain items (as listed below) in order to increase comparability of the metric from period to period, which we believe makes it useful for management, our audit committee and investors to assess our financial performance over time.
Diluted EPS is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period on a fully diluted basis. For the purpose of operational performance measurement, we calculate adjusted net income, adjusted basic EPS and adjusted diluted EPS in a manner that fully excludes the impact of any costs related to share-based compensation and includes the tax effect on the tax deductible portion of the non-IFRS adjustments.
The table below provides a reconciliation between net income to adjusted net income, adjusted basic EPS and adjusted diluted EPS for the periods presented:
|
|
Three-month period ended March 31, |
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(CHF in millions, except per share data) |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
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|
|
Class A |
|
Class B |
|
Class A |
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Class B |
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|
|
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|
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|
|
|
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Net income |
|
81.6 |
|
|
9.8 |
|
|
39.5 |
|
|
4.8 |
|
Exclude the impact of: |
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|
|
|
|
|
|
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Share-based compensation (1) |
|
15.0 |
|
|
1.8 |
|
|
4.4 |
|
|
0.5 |
|
Tax effect of adjustments(2) |
|
(1.5 |
) |
|
(0.2 |
) |
|
(0.5 |
) |
|
(0.1 |
) |
Adjusted net income |
|
95.1 |
|
|
11.4 |
|
|
43.5 |
|
|
5.3 |
|
|
|
|
|
|
|
|
|
|
||||
Weighted number of outstanding shares |
|
287,651,434 |
|
|
345,437,500 |
|
|
283,522,941 |
|
|
345,437,500 |
|
Weighted number of shares with dilutive effects |
|
3,356,157 |
|
|
11,812,592 |
|
|
3,290,072 |
|
|
10,412,977 |
|
Weighted number of outstanding shares (diluted and undiluted)(3) |
|
291,007,591 |
|
|
357,250,092 |
|
|
286,813,013 |
|
|
355,850,477 |
|
|
|
|
|
|
|
|
|
|
||||
Adjusted basic EPS (CHF) |
|
0.33 |
|
|
0.03 |
|
|
0.15 |
|
|
0.02 |
|
Adjusted diluted EPS (CHF) |
|
0.33 |
|
|
0.03 |
|
|
0.15 |
|
|
0.02 |
|
(1) Management excludes share-based compensation expenses as we do not consider these expenses reflective of our ongoing operations and performance.
(2) The tax effect has been calculated by applying the local tax rate on the tax deductible portion of the respective adjustments.
(3) Weighted number of outstanding shares (diluted and undiluted) are presented herein in order to calculate Adjusted EPS as Adjusted net income for such periods.
Net Sales on a Constant Currency Basis
Net sales on a constant currency basis is a non-IFRS measure which represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales in our results to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations. Below, we show net sales split out by sales channel, geography, and product, and include the reported percent change and the constant currency percent change.
Net sales by sales channel
The following table presents net sales by sales channel:
|
|
Three-month period ended March 31, |
||||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant
|
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Wholesale |
|
317.7 |
|
283.2 |
|
12.2 |
% |
|
19.8 |
% |
Direct-to-consumer |
|
190.5 |
|
137.0 |
|
39.0 |
% |
|
48.7 |
% |
Net sales |
|
508.2 |
|
420.2 |
|
20.9 |
% |
|
29.2 |
% |
Net sales by geography
The following table presents net sales by geographic region (based on the location of the counterparty):
|
|
Three-month period ended March 31, |
||||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant
|
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
|
|
126.2 |
|
118.9 |
|
6.1 |
% |
|
10.4 |
% |
|
|
329.6 |
|
270.2 |
|
22.0 |
% |
|
30.4 |
% |
|
|
52.4 |
|
31.1 |
|
68.6 |
% |
|
90.7 |
% |
Net Sales |
|
508.2 |
|
420.2 |
|
20.9 |
% |
|
29.2 |
% |
Net sales by product
The following table presents net sales by product group:
|
|
Three-month period ended March 31, |
||||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant
|
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Shoes |
|
484.7 |
|
400.5 |
|
21.0 |
% |
|
29.3 |
% |
Apparel |
|
19.7 |
|
16.9 |
|
16.7 |
% |
|
24.9 |
% |
Accessories |
|
3.8 |
|
2.8 |
|
36.8 |
% |
|
42.9 |
% |
Net Sales |
|
508.2 |
|
420.2 |
|
20.9 |
% |
|
29.2 |
% |
(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non-IFRS financial measure. For additional information, refer to "Non-IFRS Measures" section.
Net Working Capital
Net working capital is a financial measure that is not defined under IFRS. We use, and believe that certain investors and analysts, use this information to assess liquidity and management use of net working capital resources. We define net working capital as trade receivables, plus inventories, minus trade payables. This measure should not be considered in isolation or as a substitute for any standardized measure under IFRS. Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.
|
|
As of March 31, |
|
As of December 31, |
|
|
|||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Accounts receivables |
|
290.1 |
|
|
204.8 |
|
|
41.7 |
% |
Inventories |
|
365.3 |
|
|
356.5 |
|
|
2.5 |
% |
Trade payables |
|
(92.5 |
) |
|
(65.1 |
) |
|
42.1 |
% |
Net working capital |
|
562.9 |
|
|
496.2 |
|
|
13.5 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514665379/en/
For investor and media inquiries
Investor Contact:
On Holding AG
Jerrit Peter
investorrelations@on.com
or
ICR, Inc.
Brendon Frey
brendon.frey@icrinc.com
Media Contact:
On Holding AG
Ryan Greenwood
press@on.com
Source: On
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