On Reports First Quarter 2025 Results
- Building on its strong global momentum, On achieves record quarterly net sales of CHF 726.6 million in the first quarter, growing by 43.0% year-over-year, 40.0% on a constant currency basis. The performance ahead of expectations is driven by On's successful multi-channel strategy, including continued exceptional momentum in the direct-to-consumer ("DTC") channel and strong demand from wholesale partners, with DTC and wholesale net sales growing 45.3% and 41.5%, respectively.
- The increased DTC share, accounting for 38.1% of On's total net sales in the quarter, supports the expansion of the brand's gross profit margin to 59.9%, up from 59.7% when compared to the same period in the prior year. On's ability to drive ongoing profitability is further visible in the net income margin of 7.8% and the significantly increased adjusted EBITDA margin of 16.5%, resulting from the continued focus on premium execution and operational efficiency gains.
- Following a strong start to the year and continued global demand for the On brand across channels, regions and products, the company raises its full-year 2025 net sales guidance, and now expects to reach at least 28% growth on a constant currency basis, equivalent to CHF 2.86 billion at current spot rates. On acknowledges that recent global trade policy shifts have introduced higher levels of planning uncertainty. The company now expects a gross profit margin in the range of 60.0% - 60.5% for the full year, and an adjusted EBITDA margin in the range of 16.5% - 17.5%.
- Supported by On's brand positioning and commitment to deliver on its premium brand promise, including the continuous evaluation of its pricing strategy within the marketplace, On remains confident in continuing to deliver strong operational profitability expansion.
- The successful launches of Cloudsurfer 2 and Cloud 6, coupled with strong traction across its apparel offering and impactful brand-building campaigns featuring high-profile talent like Zendaya, have driven global momentum for the brand. On’s focus on operational excellence and its continued global store rollout are elevating the premium experience for consumers at every touchpoint. With groundbreaking technologies like LightSpray™, On continues to dream big and redefine sportswear.
ZURICH, Switzerland, May 13, 2025 - On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”), has announced its financial results for the first quarter ended March 31, 2025.
Caspar Coppetti, Co-Founder and Executive Co-Chairman of On, said: “Building on our vision to be the most premium global sportswear brand, our first quarter results have exceeded our expectations and reflect the strong momentum of our brand across all channels, regions and product categories. Looking into the second quarter and beyond, we are energized by the global traction and cultural resonance of On as a head-to-toe sportswear brand. As we solidify our premium positioning in the marketplace, we will continue to focus on what differentiates us — combining performance and design with a constant thirst for innovations big and small."
Martin Hoffmann, Co-CEO and CFO of On, said: “We saw On's exceptional momentum from 2024 continue into 2025, delivering strong top-line growth in the first quarter, elevated further by product launches like the Cloud 6 and the Cloudsurfer 2. We are thrilled to see that the continued growing strength of our DTC channel as well as improved operational execution across our supply chain have further contributed to a significant profitability expansion. As we look ahead, we are confident that our commitment to bold innovation, operational excellence, and elevated consumer experiences will drive market share gains and further cement On’s global premium position, allowing us to navigate the higher levels of planning uncertainty in today’s market environment.”
Key Financial and Operating Metrics
Key financial and operating metrics for the three-month period ended March 31, 2025 compared to the three-month period ended March 31, 2024 include:
- net sales increased by 43.0% to CHF 726.6 million, or by 40.0% on a constant currency basis;
- net sales through the direct-to-consumer (“DTC”) sales channel increased by 45.3% to CHF 276.9 million, or by 42.4% on a constant currency basis;
- net sales through the wholesale sales channel increased by 41.5% to CHF 449.7 million, or by 38.6%on a constant currency basis;
- net sales in Europe, Middle East and Africa (“EMEA”), Americas and Asia-Pacific increased by 33.6% to CHF 168.6 million, 32.7% to CHF 437.4 million and 130.1% to CHF 120.6 million, respectively;
- net sales in EMEA, Americas and Asia-Pacific increased by 33.0%, 28.6% and 128.9% on a constant currency basis, respectively;
- net sales from shoes, apparel and accessories increased by 40.5% to CHF 680.9 million, 93.1% to CHF 38.1 million and 99.2% to CHF 7.6 million, respectively;
- net sales from shoes, apparel and accessories increased by 37.5%, 91.0%, 97.0% on a constant currency basis, respectively;
- gross profit increased by 43.5% to CHF 435.3 million from CHF 303.3 million;
- gross profit margin increased to 59.9% from 59.7%;
- net income decreased by 38.0% to CHF 56.7 million from CHF 91.4 million;
- net income margin decreased to 7.8% from 18.0%;
- basic earnings per share (“EPS”) Class A (CHF) decreased to 0.17 from 0.28;
- diluted EPS Class A (CHF) decreased to 0.17 from 0.28;
- adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") increased by 54.8% to CHF 119.9 million from CHF 77.4 million;
- adjusted EBITDA margin increased to 16.5% from 15.2%;
- adjusted net income decreased to CHF 70.5 million from CHF 106.5 million;
- adjusted basic EPS Class A (CHF) decreased to 0.22 from 0.33; and
- adjusted diluted EPS Class A (CHF) decreased to 0.21 from 0.33.
Key financial and operating metrics as of March 31, 2025 compared to December 31, 2024 included:
- cash and cash equivalents decreased by 5.7% to CHF 871.8 million from CHF 924.3 million; and
- net working capital increased by 20.3% to CHF 600.1 million from CHF 498.9 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 continues to experience strong demand across channels, regions and product categories. The company looks to further build on this global brand momentum with an exciting product pipeline for the rest of the year.
Based on the ongoing brand strength as well as visibility on the order book for the remainder of the year, On increases its full-year net sales outlook, now expecting at least 28% net sales growth on a constant currency basis, corresponding to reported net sales of at least CHF 2.86 billion at current spot rates.
On acknowledges that recent global trade policy shifts have introduced higher levels of planning uncertainty, including the potential for increased customs and freight expenses, general volatility within the global supply chain, as well as the material depreciation of all key operating currencies against the Swiss Franc. On is embedding this higher degree of uncertainty in its outlook and as a result, now expects its gross profit margin to be in the range of 60.0% - 60.5% and its adjusted EBITDA margin in the range of 16.5% - 17.5% for the full year.
Supported by On's premium brand positioning, the company remains confident in its ability to navigate the current dynamic market environment. In line with its premium brand promise, On continuously assesses its global pricing strategy within the movements of the industry and takes action where appropriate to maintain its brand positioning.
The above guidance includes the additional United States tariffs in place during the current 90 day pause on the country-specific reciprocal tariffs.
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 first quarter results is scheduled for May 13, 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: 9414365
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. 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
Adib Sisani
press@on.com
Source: On
Category: Earnings