On has announced its financial results for the third quarter ended September 30, 2021. Net sales increased by 68% in Q3 2021 and by 77% in the first nine months of 2021.
The company reported that its direct-to-consumer business grew 93% in the third quarter.
Q3 2021 was the strongest quarter in the history of On. In the quarter, the Swiss running shoe firm recorded net sales of CHF 218.0 million (US$234 million). Adjusted EBITDA was CHF 37.9 million and a gross margin of 60.2%, up from 54.5%. On added that… ‘This is happening despite the supply chain challenges of the industry.’
The company is expecting net sales of CHF 710.0 million and adjusted EBITDA of CHF 92.0 million for the full fiscal year 2021.
Martin Hoffmann, Co-CEO and CFO of On, said “The third quarter of 2021 has been the strongest in the history of the company in terms of net sales, gross profit and adjusted EBITDA. We are thankful for the relentless work of our team during the pandemic to achieve this.
“Consumer demand for the On brand is accelerating across the globe, evident by the fact that our wholesale and direct-to-consumer sales channels, geographic regions, and product groups have all contributed significantly to our strong growth of 68% for the quarter and 77% for the first nine months.
“We expect the demand for the On brand to increase. Recent supply chain challenges will lead to a transitory supply shortage in the fourth quarter and the first half of 2022. But since early November, all our production factories are open, and our outlook on net sales and adjusted EBITDA exceeds our original assumptions.”
He added, “We believe we are well-positioned to leverage this market momentum and to capitalize on the powerful consumer trends that are enlarging the global sportswear industry, increasing our brand awareness, and expanding the size and breadth of our community.”
Caspar Coppetti, Co-Founder and Executive Co-Chairman of On, said “To see what started over 10 years ago with our first prototype running shoe, to where we are today, generating quarterly net sales of CHF 218.0 million – makes us extremely proud.
“We are excited to see the great progress the company has made over the third quarter of 2021 across all our strategic initiatives. We continued to strengthen our partnership with some of the most recognized premium global retailers while significantly scaling our community through our DTC channel, including a new On store in China.
“In addition to our strong results, we hit exciting milestones this quarter, which included becoming the official outfitter for the Swiss Olympics and Paralympics teams, introducing the Cloudboom Echo to support our athletes achieve incredible results, and wowing consumers with the new Cloudstratus.
“We see our initial public offering in September as a stepping stone to continue to deliver on our growth strategy and our mission to serve more and more people around the world and have them move with us.”
