Swiss-based run shoe brand On has announced its financial results for the first quarter ended March 31, 2022. Net sales increased by 67.9% year on year in Q1 2022, with the company noting equal growth for its direct-to-consumer and wholesale business.
On reported Q1 2022 net sales of CHF 235.7 million (US$238.9 million. Net income in the period was CHF 14.3 million and adjusted EBITDA was CHF 15.7 million. This was despite the continued challenging supply chain environment.
In a release, On noted that it… ‘continues to innovate at the highest level and explore ways to move away from petroleum-based resources. The first quarter saw On’s biggest product launch in history with the all-new Cloud 5, made with an industry-leading 44% of recycled content.
‘On further announced a new cushioning technology to be introduced in spring 2023, called Cloudtec Phase, which was generated using advanced Finite Element Analysis (FEA) simulation.’
Martin Hoffmann, Co-CEO and CFO of On, said “We are extremely proud and grateful to report that we continue to see strong demand for the On brand globally and we had an outstanding start to 2022.
“Our team has once again done phenomenal work to navigate through an uncertain supply chain environment and to mitigate the impacts from last year’s factory closures. While the transitory supply shortage had still limited our ability to fulfil all of the demand, we were able to ship more products to our customers than expected while also maintaining profitability.
“In March, for the first time in our history, we were able to ship more than 1 million pairs of shoes in a single month. Building on the strong first quarter and 12 years after our foundation, we anticipate to surpass the groundbreaking hurdle of CHF 1 billion in sales for the full year 2022.
“We are thrilled to continue to see the On community growing and are excited to announce the further expansion of our presence to most countries in Latin America in the second half of 2022 – this namely includes the introduction of Argentina, Bolivia, Chile, Colombia, Peru and Uruguay as distributor markets.”
Caspar Coppetti, Co-Founder and Executive Co-Chairman of On, added “With the accelerated pace of market share gains in the first quarter of 2022, we made further progress towards our goal to be the number one brand on runners’ feet.
“We have supported this positive trend with the launch of a number of key new performance running styles that are seeing significant traction with consumers, both online and with our retail partners.
“In addition, with our Lighting program, we have a dedicated team that is focused on one mission: developing the fastest products possible and working together with our most talented athletes to reach their full potential.
“This quarter also saw our biggest product launch in history – with the Cloud 5, the latest and most environmentally friendly iteration of our flagship product in the Performance All Day category, we continue to drive the industry in sustainable innovations.”
