On Announces Fourth Quarter and Full Year Results, and the Filing of its Annual Report on Form 20-F for 2024

  • On delivers strong full year 2024 results, exceeding its latest outlook across all metrics. Net sales landed at CHF 2,318.3 million, reflecting a full year growth rate of 29.4% on a reported basis and 33.2% on a constant currency basis. On achieves a gross profit margin of 60.6%, net income of CHF 242.3 million, and an adjusted EBITDA margin of 16.7%, and further concludes the year with a strong cash balance nearing CHF 1 billion. These results underscore On's ability to drive continued strong growth alongside increasing profitability and significant cash flow generation.
  • In the fourth quarter, On's net sales increased to CHF 606.6 million, growing by 35.7% year-over-year on a reported basis and 40.6% on a constant currency basis. The strong performance was supported by On's ability to convert on the rapid rise in brand awareness across the globe. The significant brand momentum drove strong traffic to On's e-commerce channel and global retail stores, resulting in a record high DTC share of 48.8% of net sales in the fourth quarter.
  • Driven by the significant DTC share expansion and strong full-price demand throughout the holiday season, On achieves a record-breaking gross profit margin of 62.1% in Q4 2024, the highest in the company's public history. 
  • The significant strides made in 2024 across all strategic building blocks, as outlined at the 2023 Investor Day, provide On with a stronger foundation than ever before, enabling continued strong growth and profitability expansion in 2025. For the full year 2025, On expects to achieve a constant currency growth rate of at least 27%, translating to net sales of at least CHF 2.94 billion at current spot rates. On further anticipates a gross profit margin of around 60.5% for the full year, and an adjusted EBITDA margin in the range of 17.0% - 17.5%.
  • On achieves several significant milestones in 2024, including the unveiling of its innovative LightSpray™ technology, the expansion of its global retail footprint to nearly 50 own stores, and surpassing CHF 100 million in apparel net sales. As On celebrates its 15th anniversary and enters the second year of its Dream On 2026 strategy, it aims to build on its broad-based momentum. Supported by an exciting product pipeline, On intends to continue creating memorable brand experiences on the world's biggest stages and further establish its position as the brand of choice for the customer seeking the unique combination of performance, design and sustainability.

 

ZURICH, Switzerland, March 4, 2025 - On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”) today announced its financial results for the fourth quarter and full year, and that it has filed its annual report on Form 20-F (the "Form 20-F") for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission (the "SEC").

David Allemann, Co-Founder and Executive Co-Chairman of On, said: “As we celebrate our 15th anniversary and step into our next chapter, we recognize 2024 as a particularly defining moment in On's history - a year that has not only elevated our presence on the global stage but also captured the hearts of multiple generations. Our partnerships with icons like Roger Federer, Zendaya, and FKA twigs have propelled On to become a beloved brand, igniting a passion for On that transcends borders and cultures. Our strong performance demonstrates the power of the dreams we've dared to dream and the unwavering spirit of our community. Looking ahead, we are filled with a sense of purpose. By continuing to champion innovation, strengthen our core franchises, and foster meaningful connections through life-defining moments, we are confident that On is built to sustain enduring brand love for decades to come - inspiring a movement that celebrates the human spirit."
Martin Hoffmann, Co-CEO and CFO of On, said: “We close this remarkable year with immense pride in all that we've accomplished. Exceeding CHF 2.3 billion in net sales and reaching a cash position close to CHF 1 billion are not just milestones but testaments to On's continued strong momentum, all made possible through the incredible work of our team. In 2024, we witnessed unforgettable moments unfold on the world's biggest stages and saw a significant increase in global brand awareness, carrying our message of innovation and inspiration to every corner of the world. All of the achievements and unique moments in 2024 give us an incredible amount of energy for 2025. We are excited to launch a firework of new products and deliver an even more premium experience at every touchpoint to our fans. Ultimately building with our community and fans towards becoming the most premium global sportswear brand."

 

Key Financial Highlights

Key highlights for fiscal year 2024 compared to fiscal year 2023 included:

  • net sales increased by 29.4% to CHF 2,318.3 million, or by 33.2% on a constant currency basis;
  • net sales through the DTC sales channel increased by 40.3% to CHF 942.8 million, or by 44.6% on a constant currency basis;
  • net sales through the wholesale sales channel increased by 22.8% to CHF 1,375.5 million, or by 26.3% on a constant currency basis;
  • net sales in Europe, Middle East and Africa (“EMEA”), Americas and Asia-Pacific increased by 18.2% to CHF 577.8 million, 27.4% to CHF 1,480.3 million and 84.5% to CHF 260.2 million, respectively;
  • net sales in EMEA, Americas and Asia-Pacific increased by 19.9%, 31.2% and 95.6% on a constant currency basis, respectively;
  • net sales from shoes, apparel and accessories increased by 28.5% to CHF 2,199.6 million, 46.7% to CHF 101.0 million and 49.5% to CHF 17.7 million, respectively;
  • net sales from shoes, apparel and accessories increased by 32.3%, 51.0% and 54.3% on a constant currency basis, respectively;
  • gross profit increased by 31.7% to CHF 1,405.7 million from CHF 1,067.2 million;
  • gross profit margin increased to 60.6% from 59.6%;
  • net income increased by 204.5% to CHF 242.3 million from CHF 79.6 million;
  • net income margin increased to 10.4% from 4.4%;
  • basic earnings per share (“EPS”) Class A (CHF) increased to 0.75 from 0.25;
  • diluted EPS Class A (CHF) increased to 0.74 from 0.25;
  • adjusted earnings before interest taxes, depreciation and amortization ("Adjusted EBITDA") increased by 40.0% to CHF 387.6 million from CHF 276.9 million;
  • adjusted EBITDA margin increased to 16.7% from 15.5%;
  • adjusted net income increased to CHF 317.4 million from CHF 112.4 million;
  • adjusted basic EPS Class A (CHF) increased to 0.98 from 0.35; and
  • adjusted diluted EPS Class A (CHF) increased to 0.97 from 0.35.

 

Key highlights for the three-month period ended December 31, 2024 compared to the three-month period ended December 31, 2023, included:

  • net sales increased by 35.7% to CHF 606.6 million, or by 40.6% on a constant currency basis;
  • net sales through the DTC sales channel increased by 43.4% to CHF 296.2 million, or by 48.2% on a constant currency basis
  • net sales through the wholesale sales channel increased by 29.1% to CHF 310.4 million, or by 34.2% on a constant currency basis;
  • net sales in EMEA, Americas and Asia-Pacific increased by 31.0% to CHF 147.4 million, 28.1% to CHF 385.1 million, 117.5% to CHF 74.1 million, respectively;
  • net sales in EMEA, Americas and Asia-Pacific increased by 33.1%, 33.9%, and 124.6% on a constant currency basis, respectively;
  • net sales from shoes, apparel and accessories increased by 33.6% to CHF 568.8 million, 77.5% to CHF 32.6 million and 80.0% to CHF 5.2 million, respectively;
  • net sales from shoes, apparel and accessories increased by 38.5%, 82.5% and 85.6% on a constant currency basis, respectively;
  • gross profit increased by 39.5% to CHF 376.8 million from CHF 270.2 million; • gross profit margin increased to 62.1% from 60.4%;
  • net income / (loss) increased 434.6% to CHF 89.5 million from CHF (26.8) million;
  • net income margin increased to 14.8% from (6.0)%;
  • basic EPS Class A (CHF) increased to CHF 0.28 from CHF (0.08);
  • diluted EPS Class A (CHF) increased to CHF 0.27 from CHF (0.08);
  • adjusted EBITDA increased by 38.3% to CHF 99.4 million from CHF 71.9 million;
  • adjusted EBITDA margin increased to 16.4% from 16.1%;
  • adjusted net income/(loss)increased to CHF 107.7 million from CHF (16.3) million;
  • adjusted basic EPS Class A (CHF) increased to CHF 0.33 from CHF (0.05); and
  • adjusted diluted EPS Class A (CHF) increased to CHF 0.33 from CHF (0.05).

 

Key balance sheet highlights as of December 31, 2024 compared to December 31, 2023 included:

  • cash and cash equivalents increased by 86.9% to CHF 924.3 million from CHF 494.6 million; and
  • net working capital increased by 0.5% to CHF 498.9 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 section titled “Non-IFRS Measures.”

 

Outlook

On enters 2025 with remarkable brand momentum, propelled by impactful brand moments and the successful execution of its key strategic initiatives, solidifying its vision to be the most premium global sportswear brand. Fueled by strong demand in the early months of the year, an exciting innovation pipeline in running and beyond, and a strengthened operational backbone, On is poised for continued success in 2025.

Building on the exceptional financial results in 2024 ahead of guidance, On is tracking ahead of the trajectory implied by its midterm targets outlined at the 2023 Investor Day. In 2025, On is confident in its ability to continue on this path and achieve a constant currency net sales growth rate of at least 27% for the full year. At current spot rates, this translates to full-year reported net sales of at least CHF 2.94 billion. Due to prior year comparison dynamics and timing of key product launches, including the Cloud 6, On anticipates a higher growth rate in the first half of the year.

Supported by On's premium brand positioning and the continued expansion of its DTC channel, and factoring in an anticipated foreign exchange headwind due to the strengthened US Dollar against the Swiss Franc, On expects to maintain its gross profit margin at around 60.5% for the full year 2025. Driven by the strong gross profit margin and anticipated operational efficiency gains, On is steadily progressing toward itambitious mid-term target of achieving an adjusted EBITDA margin of over 18% in 2026. In 2025, On anticipates to achieve a full year adjusted EBITDA margin in the range of 17.0% - 17.5%.

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").

 

High-res images available for download HERE.

 

Conference Call Information

A conference call to discuss fourth quarter results is scheduled for March 4, 2025 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:

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

Conference ID: 1279252

Additionally, a live webcast of the conference call will be available on the Company's investor relations website and via the following link. Following the conclusion of the call, a replay of the conference call will be available on the Company's website.

 

Annual Report

The Form 20-F can be accessed by visiting either the SEC's website at www.sec.gov or the Company's website at investors.on.com/. In addition, the Company's shareholders may receive a hard copy of the Form 20-F, which includes the Company's complete audited financial statements, free of charge by requesting a copy from the Company contact below.


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. Fifteen 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® and LightSpray™ 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 80 countries globally and engages with a digital community on www.on.com.

 

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
On PR Team
press@on.com

 

Source: On
Category: Earnings

 

 

 

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About On

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On AG Förrlibuckstrasse 190 8005 Zurich | CH

press@on.com

www.on.com