On raises guidance as sales jump 32%

Swiss Sportswear company On has upped its full-year revenue guidance after its second quarter sales jumped 32% to CHF 749.2m (£688.1m).

The performance comes as it posted net sales through the direct-to-consumer (“DTC”) sales channel increased 47.2% to CHF 308.3m (£283,1m) and net sales through its wholesale sales channel also increased by 23.1% to CHF 441m (£404m).

On also revealed that its gross profit increased by 35.4% to CHF 460.8m (£423.1m), up from CHF 340.2m (£312.m) the previous year. Gross profit margin also improved to 61.5% from 59.9%.

Looking ahead, On said it now expects full-year sales of CHF2.91bn (£2.67bn), up from its previous outlook of CHF 2.86bn (£2.62bn).

David Allemann, co-founder and executive co-chairman, said: “Our Q2 results leave no doubt: On is playing the long game. We achieved a remarkable 38.2% net sales growth on a constant currency basis, not by chasing trends, but by building a resilient brand for decades ahead.

“This quarter proves our strategy is working – from our diversified portfolio of iconic footwear franchises to our stellar growth in apparel and our global brand footprint. The future of On is taking shape right now, and the most exciting chapters are ahead of us.”

Martin Hoffmann, CEO and CFO, added: “We’re one and a half years into our three-year strategic plan, and the results of our consistent execution and unwavering focus are clearly visible in the outstanding numbers we report today. Our premium positioning is coming to life across every consumer touchpoint, with product innovation, storytelling and distribution all working together to elevate the brand further.

“We’re also incredibly encouraged by the strong engagement and enthusiasm we’re seeing from our retail partners, whose support adds to the momentum behind the brand. Our performance gives us strong conviction in the impact of our strategy and the opportunities ahead to build an even more distinctive and desirable global brand.”