On reports Q3 sales growth, profit widens

Swiss performance brand On has reported strong sales growth in its first trading update since going public earlier this year.

In the three months to September 30, the company saw a 67.6 percent year-on-year growth in net sales to 218 million Swiss francs (CHF).

Breaking that down by channel, sales through the direct-to-consumer channel increased 93 percent to CHF 75.7 million, while the wholesale channel was up 56.7 percent to CHF 142.3 million.

Sales were strongest in North America, up 82.6 percent to CHF 112.2 million, while in Europe they were up 50.3 percent to CHF 88.3 million, and in Asia-Pacific they were up 71.4 percent to CHF 13.1 million.

On reported a net income of CHF 13.0 million, up from CHF 8.1 million a year earlier.

The company, which floated on the New York Stock Exchange in September, was founded in 2010 by Olivier Bernhard, David Allemann and Caspar Coppetti.

Best known for its sneakers, On is also backed by Swiss tennis legend Roger Federer, who in 2019 joined the business as a “close partner” after investing an undisclosed sum.

Commenting on the trading update, co-founder and executive co-chairman Caspar Coppetti said: “To see what started over ten years ago with our first prototype running shoe, to where we are today, generating quarterly net sales of CHF 218.0 million - makes us extremely proud.”

On warned that supply chain issues linked to Covid lockdowns in Vietnam would continue to impact it in the coming quarters.

That taken into account, the company expects full-year net sales to increase by 67 percent year-on-year to CHF 710 million, and adjusted EBITDA of CHF 92 million.

For the year to December 31 2022, On expects net sales to be at least CHF 960 million, and adjusted EBITDA to be CHF 125 million.