Swiss running shoe specialist On has exceeded expectations in its Q1 results, achieving another quarter of record-breaking net sales. The company attributes its success to an improved supply chain, the opening of a new store in London, and its entry into the tennis market. On achieved impressive net sales of CHF420.2 million, representing a growth rate of 78.3% compared to the previous year. Sales were strong across all regions, channels, and product categories. Direct-to-consumer sales increased by 64.3% to CHF137 million, while wholesale sales rose by 86% to CHF283.2 million.

In terms of regional performance, On reported a 51.6% increase in EMEA sales, reaching CHF118.9 million. The Americas market experienced the highest growth, with sales soaring by 91.9% to CHF270.2 million. Asia-Pacific also saw significant growth, with sales rising by 89.4% to CHF31.1 million. Shoe sales accounted for CHF400.5 million, showing an 80% increase. Apparel sales increased by 48.9% to CHF16.9 million, and accessories saw a growth of 52.3% to CHF2.8 million. These impressive figures demonstrate the improved operational environment and product availability compared to the previous year, enabling On to leverage its brand momentum.

Of particular note, On achieved a Q1 gross profit margin of 58.3%, surpassing the previous margin of 51.8%. This notable improvement is attributed to the normalization of the supply chain, which eliminated the need for exceptional air freight usage that impacted profitability in Q1 of 2022. On also reported significant increases in net income and adjusted EBITDA for the quarter, reaching CHF44.4 million (up 209.2%) and CHF61 million (up 288.2%) respectively. The strong order book for the second half of the year, driven by the introduction of new products, further strengthens On’s confidence in its growth ambitions for 2023. As a result, the company has revised its full-year outlook, anticipating net sales of at least CHF1.74 billion.

On has also benefitted from the impressive performances of its athletes, which have generated positive attention for the brand. Hellen Obiri’s victory at the Boston Marathon and Iga Świątek’s win at the Stuttgart Open, her first tournament as an On athlete, have been significant highlights. Martin Hoffmann, Co-CEO and CFO of On, expressed his satisfaction with the Q1 results, stating, “Our record net sales in Q1 are further proof of the strong brand momentum. We always emphasize the importance of our multi-channel strategy, and we are very happy to see the contributions of our new retail stores. Supported by an exceptionally strong start for our new London store, our own retail net sales more than quadrupled year-over-year. Along with our expansion into tennis, On is reaching more fans than ever before.”

Useful links:
1. On Q1 Results – Official Announcement
2. On Official Website