“This quarter's exceptional results are a demonstration of the incredible work of our team, the growing global demand for the On brand, and the power of On's premium position. The resulting net sales and profitability ahead of our expectations puts us in a position to significantly increase our outlook for the full year 2024, and fuels our confidence as we head into the holiday season and continue to shape the future of sportswear”, commented Martin Hoffmann, Co-Chief Executive Officer at On.

Third Quarter Results

The Swiss company reported record financial results for the three-month period, which ended on the 30^th of September 2024. Net sales reached 635.8 million Swiss francs (680.6 million euros), a 33.2% year-over-year increase on a constant currency (cc) basis.

Growth was primarily driven by the direct-to-consumer (DTC) channel, which surged by 50.7% (cc), as compared to the same period last year, representing 38.8% of total sales. This represents an increase of 450 basis points in the DTC share of total revenue, reflecting both global brand awareness and operational improvements at On.

The company also reported its highest gross profit margin since its initial public offering, reaching 60.6% in the third quarter of 2024, up from 59.9% in the third quarter of the previous year. This growth was driven by the expansion of the DTC channel and a focus on full-price sales. On’s strong sales performance and cost management also led to an adjusted EBITDA margin of 18.9%.

Nine Months Results

In the first nine months of 2024, On reported increased net sales of 1.7 billion Swiss francs (1.82 billion euros), an increase of 30.7% (cc), as compared to the same period in 2023. Sales in the DTC channel rose by 43.0% (cc) to 646.6 million Swiss francs (692.3 million euros) on a comparable basis, as well as wholesale revenue, which grew by 24.2% (cc) year-over-year.

Gross profit increased by 29.1% to 1.0 billion Swiss francs (1.07 billion euros) from 797.1 million Swiss francs (853.5 million euros) in the same nine-month period last year. Gross margin rose by 80 basis points to 60.1% and net income margin grew to 8.9% from the previous 7.9% in the first nine months of 2023.

Full Year 2024 Outlook

On raised its full year 2024 net sales growth outlook to 32% (cc) compared to fiscal 2023, corresponding to reported net sales of 2.29 billion Swiss francs (2.45 billion euros).

The company also expects a gross profit margin of around 60.5% for the full year and an adjusted EBITDA margin at the top end of the 16.0% to 16.5% guidance range. This optimism stems from solid performance in the first nine months of 2024 and robust brand momentum heading into the holiday season.