On Holding AG Reports Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-14
On Holding AG Reports Q2 2024 Financial Results
On Holding AG (NYSE: ONON), a premium global sportswear brand, has announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Change (YoY) | Consensus Estimates (Q2 2024) | Q2 2024 vs. Consensus |
|---|---|---|---|---|---|
| Net Sales (CHF) | 567.7M | 444.1M | +27.8% | $648.28M (USD) | Below |
| Gross Profit (CHF) | 340.2M | 264.5M | +28.6% | ||
| Gross Profit Margin | 59.9% | 59.5% | |||
| Net Income (CHF) | 30.8M | 3.3M | +834.3% | ||
| Basic EPS (CHF) | 0.10 | 0.01 | $0.18 (USD) | Below |
Interpretation: On Holding AG reported strong revenue growth of 27.8% year-over-year to CHF 567.7 million, driven by its multi-channel sales strategy. The gross profit margin saw a slight increase to 59.9%, demonstrating effective cost management and lower freight rates. Net income surged remarkably by 834.3%, evidencing substantial growth and profitability improvements.
Revenue Performance by Segment
| Segment | Q2 2024 (CHF) | Q2 2023 (CHF) | Change (YoY) | Constant Currency Change |
|---|---|---|---|---|
| DTC Sales | 209.4M | 163.5M | +28.1% | +30.4% |
| Wholesale | 358.2M | 280.6M | +27.6% | +28.8% |
| EMEA | 138.4M | 113.7M | +21.8% | +22.2% |
| Americas | 370.0M | 296.5M | +24.8% | +25.8% |
| Asia-Pacific | 59.2M | 34.1M | +73.7% | +84.7% |
Interpretation: On saw robust sales growth across all segments, with Asia-Pacific region outperforming others with a 73.7% increase year-over-year. This highlights the effectiveness of On’s multi-channel strategy and its increasing global footprint.
Key Operational Data
| Metric | Q2 2024 | Q2 2023 | Change (YoY) |
|---|---|---|---|
| Gross Profit Margin | 59.9% | 59.5% | +0.4% |
| Net Income (CHF) | 30.8M | 3.3M | +834.3% |
| EBITDA (CHF) | 90.8M | 62.7M | +44.7% |
| Adjusted EBITDA Margin | 16.0% | 14.1% | +1.9% |
Comments from Company's Officers
David Allemann, Co-Founder and Executive Co-Chairman, stated, “We are coming out of the summer with a lot of confidence and are extremely excited about On's trajectory... These significant milestones are an outcome of our mantra - Dream On - a commitment to pursue the most daring dreams to achieve long-term, innovation-led success, and we are thrilled to build on these milestones during the years ahead.”
Martin Hoffmann, Co-CEO and CFO, added, “The past weeks and months have been filled with exciting brand moments for On and it is clear that we have laid the groundwork for what we believe will shape On for many years to come... We are very pleased to see the ongoing strong momentum of the On brand across channels, regions and products, as evidenced in our very strong results in the first half of 2024.”
Forward Guidance
On reiterates its full-year 2024 expectations, looking to achieve a net sales growth of at least 30% on a constant currency basis, translating to projected net sales of CHF 2.26 billion. Additionally, the company expects to achieve a gross profit margin of around 60% and an adjusted EBITDA margin between 16.0% and 16.5%.
Stock Price Movement
Following the earnings release, On Holding AG’s stock price experienced a decline of 6.76%.
For more details and further analysis, you can visit On's Investor Relations Website .
