admin On reported net sales increase of 46.5 percent to 480.5 million Swiss francs for the third quarter.
Following On’s outperformance, the company is increasing its net sales outlook for the year by 30 million Swiss francs, and now expects to reach 1.79 billion Swiss francs, implying growth of over 46 percent and a reported growth rate of 21 percent or 30 percent constant currency in the fourth quarter.
Commenting on the third quarter trading update, Martin Hoffmann, Co-CEO and CFO of On, said in a statement: “The third quarter has not only been the seventh consecutive record top-line quarter, but also our most successful quarter in history across numerous measures. The brand momentum for On’s footwear, apparel and accessories continues to convert into high sales growth across all channels.”
On posts strong Q3 financial performance
The company’s net sales through the direct-to-consumer (DTC) sales channel increased 54.6 percent to 164.7 million Swiss francs, while net sales through the wholesale sales channel increased 42.6 percent to 315.7 million Swiss francs.
The company reported net sales in Europe, Middle East and Africa (EMEA), Americas and Asia-Pacific increased 19.9 percent to 144 million Swiss francs, 60.5 percent to 294.9 million Swiss francs and 71.5 percent to 41.6 million Swiss francs, respectively.
On’s net sales from shoes, apparel and accessories increased 47 percent to 456.9 million Swiss francs, 31.8 percent to 20.1 million Swiss francs and 84.2 percent to 3.5 million Swiss francs, respectively.
Gross profit for the quarter increased 53.5 percent to 287.7 million Swiss francs and gross profit margin increased to 59.9 percent. Third quarter net income increased 184.4 percent to 58.7 million Swiss francs, while basic earnings per share increased to 0.18 Swiss francs.
Diluted EPS increased to 0.18 Swiss francs, adjusted EBITDA increased 44.3 percent to 81.3 million Swiss francs, adjusted EBITDA margin decreased to 16.9 percent from 17.2 percent, and adjusted net income increased to 65.5 million Swiss francs.
The company’s adjusted basic EPS increased to 0.21 Swiss francs and adjusted diluted EPS increased to 0.20 Swiss francs.
“With the increased outlook for the full year 2023 and our recently announced Dream On vision for 2026, we are heading into the holiday season with a lot of confidence and are very excited for the road ahead,” added Hoffman.
Review of On’s nine month results
For the nine months, net sales increased 57.2 percent to 1,345.0 million Swiss francs; net sales through the DTC sales channel increased 57.4 percent to 465.2 million Swiss francs; and net sales through the wholesale sales channel increased 57.2 percent to 879.8 million Swiss francs.
On increased net sales in EMEA, Americas and Asia-Pacific by 31.3 percent to 376.3 million Swiss francs, 68.9 percent to 861.7 million Swiss francs and 82.7 percent to 107 million Swiss francs, respectively.
The company’s net sales from shoes, apparel and accessories increased 57.9 percent to 1,285.6 million Swiss francs, 40.9 percent to 50.4 million Swiss francs and 60.9 percent to 8.9 million Swiss francs, respectively.
Gross profit for the period increased 69.5 percent to 797.1 million Swiss francs, gross profit margin increased to 59.3 percent, net income increased 26.4 percent to 106.3 million Swiss francs and basic EPS increased to 0.33 Swiss francs.
On’s diluted EPS increased to 0.33 Swiss francs, while adjusted EBITDA increased 98.1 percent to 205 million Swiss francs, adjusted EBITDA margin increased to 15.2 percent, adjusted net income increased 50 percent to 126.1 million Swiss francs and adjusted basic EPS increased to 0.40, while adjusted diluted EPS increased to 0.39 Swiss francs.
