On continues to make progress as sales jump in 2022 and Q4

By

Sandra Halliday

Published
Mar 21, 2023

Fast-growing Swiss sports specialist On has reported its Q4 and full-year results and said 2022 was a strong one for the still-young business.

Annual net sales reached CHF1.222 billion (€1.2bn/£1bn/$1.3bn), the first time they rose above the CHF1 billion mark with a 68.7% rise year on year.

That came with a gross profit margin of 56%, net income of CHF57.7 million (up from a net loss of CHF170.2 million), and a net income margin of 4.7%. Adjusted EBITDA was up 71.4% to CHF165.3 million, and it reported an adjusted EBITDA margin of 13.5%, “showcasing On's commitment to managing the company for long-term, sustainable growth and profitability”.

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During the latest year, net sales through the DTC channel increased 61.4% to CHF445.1 million, while wholesale was up 73.1% to CHF777 million.

Sales in North America rose 80.3% to CHF738.5 million, while Europe was up 36.1% to CHF354.3 million, Asia-Pacific rose 87.7% to CHF80.2 million and the Rest of World region jumped 310.5% to CHF 49.1 million.

Product-wise, that divided into a 70.9% surge to CHF 1.167 billion for shoes, a 30.2% rise to CHF47.3 million for apparel and 48.3% rise to CHF7.4 million for accessories.

Meanwhile, Q4 net sales rose 91.9% to CHF366.8 million, growing by 91.9%, “driven by an exceptional underlying full-price demand throughout the holiday season across regions and channels”.

The quarterly profit margin was 58.5%, “continuing the sequential improvement over the 2022 quarters and reflecting a normalisation of operations to return to sea freight as the main mode of shipment”. This meant a Q4 net loss that narrowed to CHF26.4 million from CHF187 million.

The company added that “the ongoing exceptional demand for On's products, the strong product pipeline and multi-channel success gives the company confidence for achieving strong results in 2023”.

It expects net sales of at least CHF1.7 billion this year, a stable gross profit margin of around 58.5% and a higher adjusted EBITDA margin of 15%.

Martin Hoffmann, Co-CEO and CFO of On, said: “After a great year and exceptionally strong fourth quarter well beyond our own expectations, we are heading into 2023 with a lot of momentum and in a position of strength. After navigating through a challenging 2022, including supply shortages, tight production capacities and disruption of global trade lanes, we are looking forward to a great year with largely normalised operations. 

“We have made significant progress in many areas in the 18 months since our IPO, which will set us up for ongoing success and market share gains.”