By Exec Edge Editorial Staff
Swiss athletic brand On Holding AG (NYSE: ONON) posted a surge in third-quarter revenue, leading it to record its strongest quarter ever and to raise full-year guidance.
Third quarter sales increased by 50.4%, driven by strong wholesale growth of 55.6% and DTC growth of 40.7%, the company said in a statement. Net sales for the quarter reached CHF 328.0 million, with net income and adjusted EBITDA reaching CHF 20.6 million and CHF 56.3 million, respectively.
The company, known for its Swiss-designed running shoes and apparel, now expects net sales of CHF 1.125 billion and adjusted EBITDA of CHF 148 million for the full year, an increase from prior targets of CHF 1.1 billion and CHF 145 million.
Martin Hoffmann, Co-CEO and CFO of On, said: “With 50.4% top-line growth and CHF 56.3 million adjusted EBITDA, Q3 has been another record quarter for On. We are extremely proud to have exceeded 1 billion Swiss Francs in net sales when considering the past 12 months leading up to September 30th. Our recently launched running and trail running shoes are extremely hot and win market share globally. The win of On Athlete Gustav Iden in the men’s Ironman World Championship in Hawaii, the launch of our first online re-sell platform Onward, our we-chat mini program in China, and our latest owned retail store opening in Los Angeles are just some of the highlights in the last three months. The strong nine-month results and the strong order books for Q4 and beyond give us a lot of confidence going into the last months of the year and into 2023, putting us in a position to again increase our net sales outlook for the full year 2022. All of this would not be possible without our culture and the team that is standing behind it.”
David Allemann, Co-Founder and Executive Co-Chairman of On, said: “The momentum of the On brand shows no signs of slowing. This quarter has seen On reach more new fans than ever before with our mix of innovative performance footwear and apparel, powerful marketing campaigns and immersive shopping experiences. Our unrelenting focus on performance innovation continues to be a winning formula, inspiring us to create the world’s first ever shoe made from carbon emissions and helping our fans and elite athletes to achieve their dreams.”