On Running Is on Track to Become Billion-Dollar Brand After Strongest-Ever Quarter
On, the fast-growing Swiss running brand, just reported its strongest quarter yet.
Q3 sales were up 50.4% to 328 million Swiss francs, or $348 at current exchange, and net income increased to 20.6 million Swiss francs, or about $21.88 million. By channel, DTC net sales were up 40.7% and wholesale net sales were up increased 55.6%. Adjusted diluted EPS increased by 0.01 Swiss franc to 0.07 Swiss francs.
Over the last nine months, On’s net sales increased 60.3% to 855.4 million Swiss francs, or around $908 million. On achieved these results despite an uncertain macroeconomic environment, foreign exchange headwinds and supply chain slowdowns. Over the last 12 months, On exceeded 1 billion Swiss Francs in net sales.
Given the strong results, On raised its guidance for the full year 2022 and now expects net sales of net sales of 1.125 billion Swiss francs, or around $1.2 billion.
On Co-CEO and CFO Martin Hoffmann said in a statement that On’s strong results over the last three quarters gives the company “a lot of confidence” as they round out the year and enter 2023. Hoffmann highlighted recent key initiatives and launches in Q3, including the launch of its resale platform and On’s recent retail store opening in Los Angeles.
“The momentum of the On brand shows no signs of slowing,” said co-founder and exectuive co-chairman David Allemann. “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.”
Backed by tennis champion Roger Federer, On sold 31.1 million shares for $24 each in its IPO in September 2021, which brought the company’s value to more than $6 billion, Reuters reported. The brand earned the FNAA 2021 Brand of the Year honor last year.