Swiss run shoe brand On has reported strong consumer demand across all regions, channels, and product categories. In 2021, the company recorded net sales of CHF 724.6 million (US$776 million), a gross profit margin jump to 59.4% and an adjusted EBITDA margin of 13.3%.
Net sales increased by 53.7% in the fourth quarter of 2021 and by 70.4% in fiscal year 2021, with the direct-to-consumer business growing 76.7% in the fourth quarter and wholesale growing 39.3%.
According to the company… ‘This validates the strength of On’s multi-channel distribution, where wholesale and DTC channels are highly complementary.’
On noted that its initial public offering in September 2021 resulted in additional awareness and brand momentum, further supporting its growth.
Martin Hoffmann, Co-CEO and CFO of On, said “A year is like a marathon race. The circumstances of the fourth quarter made the last miles even more challenging. But thanks to our whole team we were able to exceed our expectations for Q4 and to successfully finish the year with many new record numbers.
“We continued to see strong demand across all regions and product categories – with North America and China showing exceptional growth rates. With 2022 now underway, we are even more confident and excited about the global growth opportunities and many new products that will allow our customers to move.
“Importantly, our production capacity in Vietnam has been back at 100% of the pre-lockdown commitments since December 2021. Overall, we are fast-tracking the capacity ramp-up plan this year, and leveraging our close relationship with all factory partners. This includes the expansion into Indonesia, where we just started production in a new facility to diversify our production network.”
