Positive start for On
Swiss sportswear corporation On has reported a strong start to the fiscal year 2024.
Achieving record net sales of CHF 508.2 million ($560 million) in the first quarter, an increase of 20.9% year-over-year, the notable growth was primarily attributed to a significant uptick in direct-to-consumer ("DTC") sales, which surged by 39.0% year-over-year and 48.7% on a constant currency basis.
This achievement has been supported by efficient inventory management, resulting in a gross profit margin of 59.7%, a slight improvement from the previous year's 58.3%.
For the remainder of the fiscal year, On maintains its forecast of at least 30% growth in net sales on a constant currency basis, equivalent to reported net sales of at least CHF 2.29 billion ($2.5 billion) at current spot rates. Additionally, the company aims to sustain its gross profit margin at around 60% and expects an adjusted EBITDA margin in the range of 16.0% to 16.5% for 2024.
The company attributes its success to achievements in athletic endeavours, such as Hellen Obiri's consecutive win at the Boston marathon. Moreover, On's expansion into new sectors like Tennis and Training is seen as contributing to its market presence and growth prospects.
