Earnings Summary: On Holding AG Reports Q3 2024 Financial Results
On Holding AG (NYSE:ONON) released its financial results for the third quarter ending September 30, 2024, showcasing robust growth in both net sales and profitability, achieving record highs since its IPO in 2021.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | CHF 635.8M | CHF 480.2M | +32.3% |
| Basic EPS Class A | CHF 0.09 | CHF 0.18 | -50.0% |
Interpretation: Despite the impressive growth in top-line revenue, On Holding reported a decrease in net income, impacted by an increased investment in brand expansion and operational initiatives. The notable decline in basic earnings per share indicates pressures on profitability, largely from the ongoing strategic investments.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | YoY Change |
|---|---|---|
| Direct-to-Consumer (DTC) | CHF 246.7M | +49.8% |
| Wholesale | CHF 389.1M | +23.2% |
Interpretation: The Direct-to-Consumer (DTC) channel exhibited robust expansion, outpacing the wholesale segment, highlighting a successful effort to drive higher-margin sales directly through consumer engagement and brand initiatives.
Key Developments and Operational Highlights
- DTC sales channel grew by 49.8%, reflecting a significant shift toward direct customer engagement.
- Gross profit margin improved to 60.6%, signifying effective cost management and yield optimization.
- The APAC region posted a remarkable sales increment of 79.3% year-over-year, driven by effective market penetration and brand acceptance.
Executive Comments
Caspar Coppetti, Co-Founder and Executive Co-Chairman, emphasized the brand’s global trajectory and innovation focus, while Martin Hoffmann, Co-CEO and CFO, attributed the period's success to the team's execution and the brand's premium market position, reinforcing the positive outlook entering the holiday season.
Forward Guidance
On raised its full-year 2024 net sales growth forecast to at least 32% on a constant currency basis. The company expects to meet or exceed previous profitability targets, forecasting a gross profit margin of approximately 60.5% and positioning its adjusted EBITDA margin at the higher end of expected ranges.
Stock Price Movement
Following the earnings release, On Holding's stock price experienced an uplift, appreciating by approximately 2.37%, reflecting investor confidence in the company's strategic growth initiatives and financial performance.
All financial and operational data has been derived and calculated based on On Holding AG’s Q3 2024 earnings release and is reported in Swiss Francs where specified.
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