On reported strong results, sales were up 33% for FY24 and Margins continue to expand. Initial forecast is to grow at least 27% in FY25. Strong partnerships with Federer, Zendaya, and TKA Twigs continue to expand brand awareness, especially among Gen Z. I thought the Superbowl commercial with Elmo & Federer was great and they continue to create buzz in the Olympic & track world. The crazy thing is NKE is growing at -10% but is trading at a higher multiple. Stock is up 7% on a tough tape day.
-I’m long ONON, 3% position
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David Allemann highlighted that On Holding achieved CHF2.32 billion in net sales for 2024, driven by a constant currency growth rate of 33%. The company reported a gross profit margin of 60.6% and an adjusted EBITDA margin of 16.7%, both exceeding expectations.
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The Cloud 6, a new iteration of a popular franchise, was soft-launched with strong early momentum. Allemann emphasized its potential to become a significant growth contributor in 2025.
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The company expanded its retail footprint with the opening of 19 premium stores in 2024, including iconic locations like Paris and Milan. The retail expansion also supported a significant increase in regional awareness.
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CFO Martin Hoffmann reported Q4 net sales of CHF606.6 million, with a constant currency growth rate of 40.6%. Direct-to-consumer (DTC) sales reached CHF296.2 million, accounting for a record 48.8% of total sales.
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Hoffmann stated, “We have proven the ability to drive significant positive cash flow, increasing our cash position to close to CHF1 billion at the end of 2024.”
Outlook
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On Holding anticipates a constant currency growth rate of at least 27% for 2025, targeting CHF2.94 billion in revenue. The company expects a gross profit margin of approximately 60.5%, with an adjusted EBITDA margin between 17% and 17.5%.
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Hoffmann mentioned that the first half of 2025 is expected to show stronger growth compared to the second half, partially driven by the initial sell-in of the Cloud 6.
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Retail expansion in Southeast Asia and the Middle East is planned for 2025, along with scaling production capabilities for LightSpray innovation.
Financial Results
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Q4 2024 net sales reached CHF606.6 million, with DTC sales increasing 48.2% on a constant currency basis. Wholesale sales grew 34.2% on a constant currency basis to CHF310.4 million.
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Gross profit margin for Q4 was 62.1%, the highest in the company’s history, driven by a record DTC share and disciplined pricing strategies. Adjusted EBITDA margin for the quarter stood at 16.4%.
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Regional performance highlighted growth in APAC, with Q4 sales reaching CHF74.1 million, up 124.6% on a constant currency basis. Strong growth was also seen in the Americas and EMEA, with key contributions from markets like Brazil, France, and Italy.
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The apparel category experienced a robust 77.5% growth in Q4, reaching CHF32.6 million, supported by a DTC-heavy sales mix.
Full Press release: On-presents-Q4-FY-Results-2024_EN_vFF2.pdf