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On Reports Results for the Second Quarter and Six-Month Period Ended June 30, 2024

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On Holding AG (NYSE: ONON) reports record Q2 2024 results, with net sales reaching CHF 567.7 million, a 27.8% year-over-year growth. The company's multi-channel strategy shows strength across regions and products, with standout performances in Asia-Pacific (73.7% growth) and apparel (63.0% growth). Gross profit margin improved to 59.9%, while net income significantly expanded to CHF 30.8 million. On reiterates its full-year 2024 guidance, expecting at least 30% constant currency growth and reported net sales of CHF 2.26 billion. The company continues to focus on being a premium global sportswear brand, launching initiatives like the LightSpray™ technology and partnering with Zendaya.

On Holding AG (NYSE: ONON) riporta risultati record per il Q2 2024, con vendite nette che raggiungono CHF 567,7 milioni, con una crescita del 27,8% anno su anno. La strategia multi-canale dell'azienda mostra solidità in tutte le regioni e i prodotti, con performance eccezionali in Asia-Pacifico (crescita del 73,7%) e abbigliamento (crescita del 63,0%). Il margine di profitto lordo è migliorato al 59,9%, mentre l'utile netto è significativamente aumentato a CHF 30,8 milioni. On ribadisce le sue previsioni per l'intero anno 2024, prevedendo almeno 30% di crescita a valuta costante e vendite nette riportate di CHF 2,26 miliardi. L'azienda continua a concentrarsi sull'essere un marchio premium di sportswear globale, lanciando iniziative come la tecnologia LightSpray™ e collaborando con Zendaya.

On Holding AG (NYSE: ONON) informa sobre resultados récord del Q2 2024, con ventas netas alcanzando CHF 567,7 millones, un crecimiento del 27,8% en comparación con el año anterior. La estrategia multicanal de la empresa muestra fortaleza en todas las regiones y productos, con actuaciones destacadas en Asia-Pacífico (crecimiento del 73,7%) y vestimenta (crecimiento del 63,0%). El margen de beneficio bruto mejoró al 59,9%, mientras que el ingreso neto se expandió significativamente a CHF 30,8 millones. On reafirma su guía para todo el año 2024, esperando al menos un 30% de crecimiento a moneda constante y ventas netas reportadas de CHF 2,26 mil millones. La compañía sigue enfocándose en ser una marca premium de ropa deportiva a nivel global, lanzando iniciativas como la tecnología LightSpray™ y asociándose con Zendaya.

On Holding AG (NYSE: ONON)는 2024년 2분기 기록 경과를 보고합니다, 순매출이 CHF 567.7 백만에 도달하며, 전년 대비 27.8% 성장을 기록합니다. 회사의 다중 채널 전략은 지역 및 제품 전반에 걸쳐 강세를 보이며, 아시아-태평양 (73.7% 성장)의류 (63.0% 성장)에서 두드러진 성과를 나타냅니다. 총 이익률은 59.9%로 개선되었으며, 순이익은 CHF 30.8 백만으로 크게 증가했습니다. On은 2024년 전체 연도 가이던스를 재확인하며, 상수 통화 성장 30% 이상 및 보고된 순매출 CHF 22.6억을 예상합니다. 이 회사는 LightSpray™ 기술과 Zendaya와의 파트너십과 같은 이니셔티브를 출시하여 프리미엄 글로벌 스포츠웨어 브랜드로서의 입지를 계속 다져가고 있습니다.

On Holding AG (NYSE: ONON) annonce des résultats record pour le T2 2024, avec un chiffre d'affaires net atteignant CHF 567,7 millions, offrant une croissance de 27,8% par rapport à l'année précédente. La stratégie multicanal de l'entreprise montre de la force à travers les régions et les produits, avec des performances remarquables en Asie-Pacifique (croissance de 73,7%) et en habillement (croissance de 63,0%). La marge brute s'est améliorée pour atteindre 59,9%, tandis que le revenu net a considérablement augmenté à CHF 30,8 millions. On réitère ses prévisions pour l'année 2024, s'attendant à au moins 30% de croissance à taux de change constant et un chiffre d'affaires net de CHF 2,26 milliards. L'entreprise continue de se concentrer sur le fait d'être une marque de vêtements de sport premium au niveau mondial, en lançant des initiatives comme la technologie LightSpray™ et en s'associant avec Zendaya.

On Holding AG (NYSE: ONON) berichtet von rekordverdächtigen Ergebnissen im Q2 2024, mit Nettoumsätzen von CHF 567,7 Millionen, was einem Jahreswachstum von 27,8% entspricht. Die Multi-Channel-Strategie des Unternehmens zeigt Stärke in allen Regionen und Produkten, mit herausragenden Leistungen in Asien-Pazifik (73,7% Wachstum) und Bekleidung (63,0% Wachstum). Die Bruttomarge verbesserte sich auf 59,9%, während der Nettogewinn auf CHF 30,8 Millionen deutlich anstieg. On bekräftigt seine Prognose für das gesamte Jahr 2024 und erwartet ein Wachstum von mindestens 30% bei konstanten Währungen sowie Nettoumsätze von CHF 2,26 Milliarden. Das Unternehmen konzentriert sich weiterhin darauf, eine Premium-Marke für Sportbekleidung zu sein, indem es Initiativen wie die LightSpray™-Technologie einführt und Partnerschaften mit Zendaya eingeht.

Positive
  • Record Q2 net sales of CHF 567.7 million, 27.8% YoY growth
  • Gross profit margin improved to 59.9% from 59.5% in Q2 2023
  • Net income increased by 834.3% to CHF 30.8 million
  • Asia-Pacific region sales grew by 73.7%
  • Apparel sales increased by 63.0%
  • Full-year 2024 guidance reiterated with at least 30% constant currency growth expected
  • Adjusted EBITDA increased by 44.7% to CHF 90.8 million
Negative
  • None.

Insights

On's Q2 2024 results showcase impressive growth and profitability. Net sales reached CHF 567.7 million, up 27.8% year-over-year, with standout performances in Asia-Pacific (73.7% growth) and apparel (63.0% growth). The gross profit margin improved to 59.9%, while net income surged to CHF 30.8 million.

Key financial metrics:

  • DTC sales: CHF 209.4 million (28.1% increase)
  • Wholesale sales: CHF 358.2 million (27.6% increase)
  • Adjusted EBITDA: CHF 90.8 million (44.7% increase)
On's full-year 2024 outlook remains strong, with expected net sales of CHF 2.26 billion and an adjusted EBITDA margin of 16.0-16.5%. The company's multi-channel strategy and focus on innovation are driving sustainable growth.

On's Q2 results reflect a robust market position in the premium sportswear segment. The 73.7% growth in Asia-Pacific signals successful market penetration in a key region. The 63.0% increase in apparel sales demonstrates effective product diversification beyond footwear.

The expansion of On's retail footprint, with new stores in Paris and Hong Kong, aligns with the trend of direct consumer engagement. The partnership with Zendaya and the introduction of LightSpray™ technology showcase On's commitment to brand building and innovation, critical factors in the competitive sportswear market.

On's ability to maintain a high share of full-price sales in a challenging economic environment indicates strong brand equity and consumer loyalty. This positions On favorably against competitors and supports its premium pricing strategy.

On's introduction of LightSpray™ technology represents a significant innovation in the sportswear industry. This proprietary technology likely enhances product performance and differentiates On from competitors. The focus on technological advancements aligns with consumer demand for high-performance, innovative sportswear.

The company's multi-channel strategy, including e-commerce and physical retail expansion, demonstrates a modern, tech-savvy approach to sales and marketing. This omnichannel presence is important for capturing market share in today's digital-first retail landscape.

On's ability to achieve strong growth while improving profitability suggests effective use of technology in supply chain management and operational efficiency. The ongoing warehouse automation project in the U.S. further indicates On's commitment to leveraging technology for scalable growth.

  • On achieves another record top-line quarter, resulting in over CHF 2 billion net sales for the last twelve month period. On's total net sales in Q2 2024 reached CHF 567.7 million, a growth of 27.8% year-over-year and of 29.4% on a constant currency basis. These results reflect the strength of On's multi-channel strategy across regions and products, with stand-out performances in Asia-Pacific and in apparel, growing by 73.7% and 63.0%, respectively.
  • As a result of On's continued high share of full-price sales as well as lower freight rates, its second quarter 2024 gross profit margin reaches 59.9%, up from 59.5% in the prior year period. On's increased profitability is further reflected in the significant net income and adjusted EBITDA expansion versus the same period in the prior year, reaching CHF 30.8 million and CHF 90.8 million, respectively.
  • Based on the high demand for the On brand, further fueled by big brand-building moments over the past months, On reiterates its stated goals for the full year 2024. This includes the expectation to reach a full year constant currency growth rate of at least 30%, corresponding to reported net sales of CHF 2.26 billion at current spot rates. On further continues to expect a gross profit margin of around 60% and an adjusted EBITDA margin in the range of 16.0 - 16.5% for the full year 2024.
  • On continues to shape its vision to be the most premium global sportswear brand, rooted in performance, design and sustainability. In the past few weeks, On unveiled its groundbreaking LightSpray™ technology, announced its long-term partnership with Zendaya and celebrated exceptional performances by On athletes. True to On's multi-channel strategy, which includes expanding its own retail store footprint, the recent weeks also saw the opening of new On stores in Paris and Hong Kong.

ZURICH--(BUSINESS WIRE)-- On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”), has announced its financial results for the second quarter and six-month period ended June 30, 2024.

David Allemann, Co-Founder and Executive Co-Chairman of On, said: “We are coming out of the summer with a lot of confidence and are extremely excited about On's trajectory. Over the past months, we have launched important long-term initiatives such as our multi-year partnership with Zendaya, groundbreaking innovations like the LightSpray™ technology and the opening of our Paris store, our largest own retail location yet. These significant milestones are an outcome of our mantra - Dream On - a commitment to pursue the most daring dreams to achieve long-term, innovation-led success, and we are thrilled to build on these milestones during the years ahead."

Martin Hoffmann, Co-CEO and CFO of On, said: “The past weeks and months have been filled with exciting brand moments for On and it is clear that we have laid the groundwork for what we believe will shape On for many years to come. These moments are only possible thanks to the dedication and passion of the entire On team. The wave of recent positive feedback and coverage fuels our ambition to continue to innovate and deliver exceptional products and experiences to our fans worldwide. We are very pleased to see the ongoing strong momentum of the On brand across channels, regions and products, as evidenced in our very strong results in the first half of 2024."

Second Quarter 2024 Financial and Operating Metrics

Key highlights for the three-month period ended June 30, 2024 compared to the three-month period ended June 30, 2023 include:

  • net sales increased by 27.8% to CHF 567.7 million, or by 29.4% on a constant currency basis;
  • net sales through the direct-to-consumer ("DTC") sales channel increased by 28.1% to CHF 209.4 million, or by 30.4% on a constant currency basis;
  • net sales through the wholesale sales channel increased by 27.6% to CHF 358.2 million, or by 28.8% on a constant currency basis;
  • net sales in Europe, Middle East and Africa (“EMEA”), Americas and Asia-Pacific increased by 21.8% to CHF 138.4 million, 24.8% to CHF 370.0 million and 73.7% to CHF 59.2 million, respectively;
  • net sales in EMEA, Americas, and Asia-Pacific increased by 22.2%, 25.8% and 84.7% on a constant currency basis, respectively;
  • net sales from shoes, apparel and accessories increased by 26.7% to CHF 542.5 million, 63.0% to 21.9 million and 23.6% to 3.3 million, respectively;
  • net sales from shoes, apparel and accessories increased by 28.2%, 66.6%, 26.3% on a constant currency basis, respectively;
  • gross profit increased by 28.6% to CHF 340.2 million from CHF 264.5 million;
  • gross profit margin increased to 59.9% from 59.5%;
  • net income increased by 834.3% to CHF 30.8 million from CHF 3.3 million;
  • net income margin increased to 5.4% from 0.7%;
  • basic earnings per share (“EPS”) Class A (CHF) increased to 0.10 from 0.01;
  • diluted EPS Class A (CHF) increased to 0.09 from 0.01;
  • adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") increased by 44.7% to CHF 90.8 million from CHF 62.7 million;
  • adjusted EBITDA margin increased to 16.0% from 14.1%;
  • adjusted net income increased to CHF 46.9 million from CHF 11.7 million;
  • adjusted basic EPS Class A (CHF) increased to 0.15 from 0.04; and
  • adjusted diluted EPS Class A (CHF) increased to 0.14 from 0.04.

Key highlights for the six-month period ended June 30, 2024 compared to the six-month period ended June 30, 2023 include:

  • net sales increased by 24.4% to CHF 1,075.9 million; or by 29.3% on a constant currency basis;
  • net sales through the DTC sales channel increased by 33.1% to CHF 399.9 million, or by 38.7% on a constant currency basis;
  • net sales through the wholesale sales channel increased by 19.8% to CHF 675.9 million, or by 24.3% on constant currency basis;
  • net sales in EMEA, Americas and Asia-Pacific increased by 13.9% to CHF 264.6 million, 23.4% to CHF 699.7 million and 70.5% to CHF 111.6 million, respectively;
  • net sales in EMEA, Americas, and Asia-Pacific increased by 16.3%, 28.0% and 86.8% on a constant currency basis, respectively;
  • net sales from shoes, apparel and accessories increased by 23.9% to CHF 1,027.1 million, 37.2% to CHF 41.6 million and 30.3% to CHF 7.1 million, respectively;
  • net sales from shoes, apparel and accessories increased by 28.8%, 43.1%, 36.3% on a constant currency basis, respectively;
  • gross profit increased by 26.3% to CHF 643.6 million from CHF 509.4 million;
  • gross profit margin increased to 59.8% from 58.9%;
  • net income increased by 156.5% to CHF 122.2 million from CHF 47.7 million;
  • net income margin increased to 11.4% from 5.5%;
  • basic EPS Class A (CHF) increased to 0.38 from 0.15;
  • diluted EPS Class A (CHF) increased to 0.37 from 0.15;
  • adjusted EBITDA increased by 36.0% to CHF 168.2 million from CHF 123.7 million;
  • adjusted EBITDA margin increased to 15.6% from 14.3%;
  • adjusted net income increased to CHF 153.4 million from CHF 60.5 million;
  • adjusted basic EPS Class A (CHF) increased to 0.48 from 0.19; and
  • adjusted diluted EPS Class A (CHF) increased to 0.47 from 0.19.

Key highlights as of June 30, 2024 compared to December 31, 2023 included:

  • cash and cash equivalents increased by 32% to CHF 652.4 million from CHF 494.6 million; and
  • net working capital increased by 14.3% to CHF 567.1 million from CHF 496.2 million.

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 a very strong first half of 2024, with two consecutive record top-line quarters and continued strong demand across channels, regions and product categories. From highly successful product launches and groundbreaking innovations to athlete success stories and authentic brand partnerships, On has further ignited its brand momentum in the first six months of 2024 with various initiatives that are converting to higher brand awareness and inspiring fans to Dream On.

As a result, On is reiterating its full year expectation of at least 30% net sales growth on a constant currency basis. Considering the recent strength of the Swiss Franc and assuming spot rates persist at current levels for the remainder of the year, this implies reported net sales of at least CHF 2.26 billion in 2024 and the continuation of On's strong momentum in the second half of the year. Additional focus over the next months will be placed on successfully advancing On's warehouse automation project in the U.S., with a view towards scaling On's distribution capabilities in North America over the medium term.

Considering the results in the first half of 2024, On additionally remains well on track to reach its profitability ambitions for the full year, and expects to achieve a gross profit margin of around 60% and an adjusted EBITDA margin of 16.0 - 16.5%.

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 U.S. Securities and Exchange Commission (the "SEC").

Conference Call Information

A conference call to discuss second quarter results is scheduled for August 13, 2024 at 8 a.m. U.S. Eastern time (2 p.m. Central European Time). Those interested in participating in the call are invited to dial the following numbers:

United States: +1 646 307 19 63
United Kingdom: +44 203 481 42 47
Switzerland: +41 43 210 51 63

Conference ID: 3575796

Additionally, a live webcast of the conference call will be available on the Company's investor relations website and under the following 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 U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “continue,” “could,” “expect,” “estimate,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “target,” “will,” “would,” and “should,” among others.

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 Russia-Ukraine or Israel-Hamas conflicts and shipping disruptions in the Red Sea and surrounding waterways; the success of operating initiatives, including advertising and promotional efforts and new product and concept development by us and our competitors; our ability to strengthen and grow our DTC channel; our ability to address climate related risks; our ability to execute and manage our sustainability strategy and achieve our sustainability-related goals and targets, including sustainable product offerings, including investor and customer scrutiny; our third-party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; supply chain disruptions, inflation and increased costs in supplies, goods and transportation; the availability of qualified personnel and the ability to retain such personnel, including our extended founder team; our ability to accurately forecast demand for our products and manage product manufacturing decisions; our ability to distribute products through our wholesale channel; changes in commodity, material, labor, distribution and other operating costs; our international operations; our ability to protect our intellectual property and defend against allegations of violations of third-party intellectual property by us; cybersecurity incidents and other disruptions to our information technology ("IT") systems; increased hacking activity against the critical infrastructure of any nation or organization that retaliates against Russia for its invasion of Ukraine; our reliance on complex IT systems; our ability to adopt generative artificial intelligence ("AI") technologies in our operations; financial accounting and tax matters; our ability to maintain effective internal control over financial reporting; the potential impact of, and our compliance with, new and existing laws and regulations; other factors that may affect our financial condition, liquidity and results of operations; and other risks and uncertainties set out in filings made from time to time with the SEC and available at www.sec.gov, including, without limitation, our most recent reports on Form 20-F and Form 6-K. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

Source: On
Category: Earnings

Consolidated Financial Information

Unaudited interim condensed consolidated statements of income

 

 

Three-month period ended June 30,

 

Six-month period ended June 30,

(CHF in millions)

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

567.7

 

444.3

 

1,075.9

864.5

Cost of sales

 

(227.4)

 

(179.8)

 

(432.3)

 

(355.1)

Gross profit

 

340.2

 

264.5

 

643.6

 

509.4

Selling, general and administrative expenses

 

(292.9)

 

(225.1)

 

(557.7)

 

(427.7)

Operating result

 

47.3

 

39.4

 

85.8

 

81.7

Financial income

 

5.8

 

4.3

 

11.2

 

6.4

Financial expenses

 

(5.9)

 

(1.9)

 

(10.8)

 

(3.6)

Foreign exchange gain / (loss)

 

(4.5)

 

(48.5)

 

72.3

 

(39.7)

Income / (loss) before taxes

 

42.7

 

(6.7)

 

158.5

 

44.8

Income tax benefit / (expense)

 

(11.8)

 

10.0

 

(36.3)

 

2.9

Net income

 

30.8

 

3.3

 

122.2

 

47.7

Earnings per share

 

 

 

 

 

 

 

 

Basic EPS Class A (CHF)

 

0.10

 

0.01

 

0.38

 

0.15

Basic EPS Class B (CHF)

 

0.01

 

 

0.04

 

0.01

 

 

 

 

 

 

 

 

 

Diluted EPS Class A (CHF)

 

0.09

 

0.01

 

0.37

 

0.15

Diluted EPS Class B (CHF)

 

0.01

 

 

0.04

 

0.01

Unaudited interim condensed consolidated balance sheets

(CHF in millions)

 

6/30/2024

 

12/31/2023

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

652.4

 

494.6

Trade receivables

 

314.0

 

204.8

Inventories

 

401.3

 

356.5

Other current financial assets

 

38.2

 

34.2

Other current operating assets

 

95.5

 

61.2

 

 

 

 

 

Current assets

 

1,501.5

 

1,151.3

 

 

 

 

 

Property, plant and equipment

 

111.7

 

93.6

Right-of-use assets

 

319.1

 

214.0

Intangible assets

 

61.7

 

64.6

Deferred tax assets

 

51.7

 

69.5

 

 

 

 

 

Non-current assets

 

544.3

 

441.7

 

 

 

 

 

Assets

 

2,045.8

 

1,593.0

 

 

 

 

 

Trade payables

 

148.2

 

65.1

Other current financial liabilities

 

76.4

 

53.4

Other current operating liabilities

 

249.9

 

156.4

Current provisions

 

16.8

 

7.1

Income tax liabilities

 

12.9

 

23.5

 

 

 

 

 

Current liabilities

 

504.1

 

305.6

 

 

 

 

 

Employee benefit obligations

 

1.6

 

2.2

Non-current provisions

 

11.4

 

10.0

Other non-current financial liabilities

 

288.1

 

190.3

Deferred tax liabilities

 

9.7

 

10.5

 

 

 

 

 

Non-current liabilities

 

310.8

 

212.9

 

 

 

 

 

Share capital

 

33.5

 

33.5

Treasury shares

 

(26.7)

 

(26.7)

Capital reserves

 

1,169.7

 

1,140.8

Other reserves

 

(4.4)

 

(9.8)

Retained earnings / (losses)

 

58.9

 

(63.3)

 

 

 

 

 

Equity

 

1,231.0

 

1,074.5

 

 

 

 

 

Equity and liabilities

 

2,045.8

 

1,593.0

Unaudited interim condensed consolidated statements of cash flows

 

 

Six-month period ended June 30,

(CHF in millions)

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Net income

 

122.2

 

47.7

Adjustments for:

 

 

 

 

Share-based compensation

 

22.9

 

8.5

Employee benefit expenses

 

0.9

 

(1.7)

Depreciation and amortization

 

48.5

 

28.0

Loss on disposal of assets

 

 

0.4

Interest income and expenses

 

(3.6)

 

(3.8)

Net exchange differences

 

(61.3)

 

35.3

Income taxes

 

36.3

 

(2.9)

Change in working capital

 

(32.2)

 

(164.6)

Trade receivables

 

(98.0)

 

(84.3)

Inventories

 

(16.8)

 

(60.0)

Trade payables

 

82.7

 

(20.3)

Change in other operating assets / liabilities

 

57.3

 

57.2

Change in provisions

 

10.5

 

4.7

Interest received

 

10.9

 

6.1

Income taxes paid

 

(28.9)

 

(11.6)

Cash inflow from operating activities

 

183.5

 

3.3

 

 

 

 

 

Purchase of tangible assets

 

(23.7)

 

(19.0)

Purchase of intangible assets

 

(2.3)

 

(2.0)

Cash (outflow) from investing activities

 

(26.0)

 

(21.0)

 

 

 

 

 

Payments of lease liabilities

 

(23.7)

 

(10.2)

Proceeds on sale of treasury shares related to share-based compensation

 

5.2

 

5.7

Interest paid

 

(7.3)

 

(2.3)

Cash (outflow) from financing activities

 

(25.8)

 

(6.7)

 

 

 

 

 

Change in net cash and cash equivalents

 

131.7

 

(24.3)

Net cash and cash equivalents at January 1

 

494.6

 

371.0

Net impact of foreign exchange rate differences

 

26.2

 

(9.6)

Net cash and cash equivalents at June 30

 

652.4

 

337.1

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.

 

Three-month period ended June 30,

Six-month period ended June 30,

(CHF in millions)

2024

2023

% Change

2024

2023

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

30.8

3.3

834.3%

122.2

47.7

156.5%

Exclude the impact of:

 

 

 

 

 

 

Income taxes

11.8

(10.0)

218.5%

36.3

(2.9)

1351.6%

Financial income

(5.8)

(4.3)

36.0%

(11.2)

(6.4)

75.7%

Financial expenses

5.9

1.9

213.9%

10.8

3.6

200.6%

Foreign exchange result

4.5

48.5

(90.7)%

(72.3)

39.7

(282.1)%

Depreciation and amortization

26.3

14.2

85.5%

48.5

28.0

73.3%

Share-based compensation(1)

17.1

9.1

88.3%

33.9

14.0

141.9%

Adjusted EBITDA

90.8

62.7

44.7%

168.2

123.7

36.0%

Adjusted EBITDA Margin

16.0%

14.1%

13.3%

15.6%

14.3%

9.3%

(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 June 30,

(CHF in millions, except per share data)

 

2024

 

2024

 

2023

 

2023

 

 

Class A

 

Class B

 

Class A

 

Class B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

27.5

 

3.3

 

2.9

 

0.4

Exclude the impact of:

 

 

 

 

 

 

 

 

Share-based compensation(1)

 

15.3

 

1.8

 

8.1

 

1.0

Tax effect of adjustments(2)

 

(0.9)

 

(0.1)

 

(0.6)

 

(0.1)

Adjusted net income

 

41.9

 

5.0

 

10.5

 

1.3

 

 

 

 

 

 

 

 

 

Weighted number of outstanding shares

 

288,082,955

 

345,437,500

 

284,127,877

 

345,437,500

Weighted number of shares with dilutive effects

 

3,430,738

 

12,467,091

 

3,464,956

 

11,792,673

Weighted number of outstanding shares (diluted and undiluted)(3)

 

291,513,693

 

357,904,591

 

287,592,833

 

357,230,173

 

 

 

 

 

 

 

 

 

Adjusted basic EPS (CHF)

 

0.15

 

0.01

 

0.04

 

Adjusted diluted EPS (CHF)

 

0.14

 

0.01

 

0.04

 

(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.
 

 

Six-month period ended June 30,

(CHF in millions, except per share data)

 

2024

 

2024

 

2023

 

2023

 

 

Class A

 

Class B

 

Class A

 

Class B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

109.1

 

13.1

 

42.5

 

5.2

Exclude the impact of:

 

 

 

 

 

 

 

 

Share-based compensation(1)

 

30.3

 

3.6

 

12.5

 

1.5

Tax effect of adjustments(2)

 

(2.5)

 

(0.3)

 

(1.1)

 

(0.1)

Adjusted net income

 

136.9

 

16.4

 

53.9

 

6.6

 

 

 

 

 

 

 

 

 

Weighted number of outstanding shares

 

287,985,587

 

345,437,500

 

283,859,171

 

345,437,500

Weighted number of shares with dilutive effects

 

3,366,410

 

12,174,230

 

3,335,726

 

11,203,866

Weighted number of outstanding shares (diluted and undiluted)(3)

 

291,351,998

 

357,611,730

 

287,194,897

 

356,641,366

 

 

 

 

 

 

 

 

 

Adjusted basic EPS (CHF)

 

0.48

 

0.05

 

0.19

 

0.02

Adjusted diluted EPS (CHF)

 

0.47

 

0.05

 

0.19

 

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 June 30,

(CHF in millions)

 

2024

 

2023

 

% Change

 

Constant Currency
% Change (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

358.2

 

280.8

 

27.6%

 

28.8%

Direct-to-consumer

 

209.4

 

163.5

 

28.1%

 

30.4%

Net sales

 

567.7

 

444.3

 

27.8%

 

29.4%

 

 

Six-month period ended June 30,

(CHF in millions)

 

2024

 

2023

 

% Change

 

Constant Currency
% Change (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

675.9

 

564.0

 

19.8%

 

24.3%

Direct-to-consumer

 

399.9

 

300.5

 

33.1%

 

38.7%

Net sales

 

1,075.9

 

864.5

 

24.4%

 

29.3%

Net sales by geography

The following table presents net sales by geographic region (based on the location of the counterparty):

 

 

Three-month period ended June 30,

(CHF in millions)

 

2024

 

2023

 

% Change

 

Constant Currency
% Change (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe, Middle East and Africa

 

138.4

 

113.6

 

21.8%

 

22.2%

Americas

 

370.0

 

296.6

 

24.8%

 

25.8%

Asia-Pacific

 

59.2

 

34.1

 

73.7%

 

84.7%

Net Sales

 

567.7

 

444.3

 

27.8%

 

29.4%

(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non- IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure.
 

 

Six-month period ended June 30,

(CHF in millions)

 

2024

 

2023

 

% Change

 

Constant Currency
% Change (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe, Middle East and Africa

 

264.6

 

232.2

 

13.9%

 

16.3%

Americas

 

699.7

 

566.8

 

23.4%

 

28.0%

Asia-Pacific

 

111.6

 

65.5

 

70.5%

 

86.8%

Net Sales

 

1,075.9

 

864.5

 

24.4%

 

29.3%

Net sales by product

The following table presents net sales by product group:

 

 

Three-month period ended June 30,

(CHF in millions)

 

2024

 

2023

 

% Change

 

Constant Currency
% Change (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shoes

 

542.5

 

428.2

 

26.7%

 

28.2%

Apparel

 

21.9

 

13.4

 

63.0%

 

66.6%

Accessories

 

3.3

 

2.7

 

23.6%

 

26.3%

Net Sales

 

567.7

 

444.3

 

27.8%

 

29.4%

 

 

Six-month period ended June 30,

(CHF in millions)

 

2024

 

2023

 

% Change

 

Constant Currency
% Change (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shoes

 

1,027.1

 

828.7

 

23.9%

 

28.8%

Apparel

 

41.6

 

30.3

 

37.2%

 

43.1%

Accessories

 

7.1

 

5.4

 

30.3%

 

36.3%

Net Sales

 

1,075.9

 

864.5

 

24.4%

 

29.3%

(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non- IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure.

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 June 30,

 

As of December 31,

 

 

(CHF in millions)

 

2024

 

2023

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade receivables

 

314.0

 

204.8

 

53.3%

Inventories

 

401.3

 

356.5

 

12.6%

Trade payables

 

(148.2)

 

(65.1)

 

127.6%

Net working capital

 

567.1

 

496.2

 

14.3%

 

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

FAQ

What was On Holding AG's (ONON) net sales growth in Q2 2024?

On Holding AG reported net sales growth of 27.8% year-over-year in Q2 2024, reaching CHF 567.7 million.

How much did On Holding AG's (ONON) net income increase in Q2 2024?

On Holding AG's net income increased by 834.3% to CHF 30.8 million in Q2 2024 compared to the same period in 2023.

What is On Holding AG's (ONON) full-year 2024 net sales guidance?

On Holding AG expects full-year 2024 reported net sales of CHF 2.26 billion, based on at least 30% constant currency growth.

Which region showed the highest growth for On Holding AG (ONON) in Q2 2024?

The Asia-Pacific region showed the highest growth for On Holding AG in Q2 2024, with sales increasing by 73.7%.

On Holding AG

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Footwear & Accessories
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