On Holding AG, the parent company for Swiss sports brand On, has announced its financial results for the third quarter and nine-month period ended September 30, 2023.
On has reported strong results for the first nine months of 2023, reaching CHF 1,345 million (US$1,513 million) in year-to-date net sales.
Q3 2023 net sales increased by 46.5%, or by approximately 58% on a constant currency basis when compared to the same period in 2022. On noted that growth in the latest three-month period was driven by its direct-to-consumer (DTC) operation, which recorded growth of 54.6% when compared to the same period in 2022.
The company also reached its highest gross profit margin since its initial public offering (IPO) two years ago, increasing to 59.9% in the third quarter 2023 from 57.1% in the comparable period in 2022. On added that this increase was driven by the continued high full-price sales, the increased DTC share versus the prior year comparison period, favourable freight and FX rates, as well as the discontinuation of extraordinary airfreight usage.
Based on the strong results in the first nine months of 2023, On is raising its net sales outlook for the full year 2023 to CHF 1.79 billion (US$2.01 billion). In addition, On now expects to reach a higher gross profit margin of at least 59.0% for the full year 2023, while maintaining the outlook for a 15.0% adjusted EBITDA margin.
Martin Hoffmann, Co-CEO and CFO of On, said “The third quarter has not only been the seventh consecutive record top-line quarter, but also our most successful quarter in history across numerous measures.
“We are extremely grateful for the hard work that our team is putting behind our joint mission. The brand momentum for On’s footwear, apparel and accessories continues to convert into high sales growth across all channels.
“We are planning to add less additional wholesale doors in the future and to focus on our existing wholesale partners and our own DTC channels, E-com and own retail. With the increased outlook for the full year 2023 and our recently announced ‘Dream On’ vision for 2026, we are heading into the holiday season with a lot of confidence and are very excited for the road ahead.”
Caspar Coppetti, Co-Founder and Executive Co-Chairman of On, said “We are thrilled about the ongoing strength and momentum of the On brand as we follow our vision to be the most premium global sportswear brand.
“Innovation and performance are at the core of On, and we are extremely excited about how these elements have once again come to life in the third quarter. We’ve seen exceptional On athlete performances on the streets, trails, tracks and tennis courts, alongside a number of innovative and exciting product launches.
“Hellen Obiri’s win at the New York City Marathon was of course a huge highlight, and makes our team even more excited for the Paris Olympics 2024.”
