“The first quarter was a very strong start to the year and a further step in the execution of our long-term strategy to be the most premium global sportswear brand. We are thrilled to have exceeded our expectations and surpassed the half-billion net sales mark in a single quarter. This serves as a validation of the strong demand we have experienced across all channels, regions, and product categories (…). Looking ahead, we're extremely excited for the months to come, filled with groundbreaking innovations, big partnerships, and the opportunity to have a notable impact in Paris this summer”, commented Martin Hoffmann, Co-CEO and CFO of On.

First Quarter Results

In the first quarter of the year, the company’s net sales reached 508.2 million Swiss francs (512.1 million euros), an increase of 20.9%, or 29.2% on a constant currency basis, as compared to the same period of last year. On highlighted that this “record” revenue was mainly driven by the “strong demand and momentum” of the direct-to-consumer (DTC) channel.

Net sales in the DTC segment grew by 39.0% (or 48.7% on a constant currency basis) in this period to 190.5 million Swiss francs (192.0 million euros), on a comparable basis to the same period of 2023. Net sales in the wholesale segment totalled 317.7 million Swiss Francs (320.1 million euros), an increase of 12.2% (or 19.8% on a constant currency basis), as compared to the same period of the previous year.

By region. In the first quarter of the current fiscal year, net sales in the EMEA region amounted to 126.2 million Swiss francs (127.2 million euros), up by 6.1% (or 10.4% on a constant currency basis) over a similar period of last year. In the Americas and the Asia-Pacific regions, net sales increased by 22.0% (or 30.4% on a constant currency basis) and 68.6% (or 90.7% on a constant currency basis) year-over-year to 329.6 million Swiss francs (332.1 million euros) and 52.4 million Swiss francs (52.8 million euros), respectively.

Finally, on a comparable basis to the first quarter of 2023, On’s shoes net sales in this period rose by 21.0% (or 29.3% on a constant currency basis) to 484.7 million Swiss francs (488.4 million euros), apparel net sales rose by 16.7% (or 24.9% on a constant currency basis) to 19.7 million Swiss francs (20.0 million euros), and accessories net sales rose by 36.8% (or 42.9% on a constant currency basis) to 3.8 million Swiss francs (3.8 million euros).

In the three months to the 31^st of March, the company’s net income increased by 106.6% to 91.4 million Swiss francs (92.1 million euros) from 44.4 million Swiss francs (44.7 million euros) in the same period of the year 2023; accordingly, the net income margin improved to 18.0% from 10.6%.

Full Year Outlook

The Swiss-based sportswear company has reiterated that it expects full-year net sales growth of at least 30% on a constant currency basis, “while remaining prudent in light of the dynamic macroeconomic and consumer environment”. At current spot rates, this implies reported net sales of at least 2.29 billion Swiss francs (2.30 billion euros).