On Reports Results for the Second Quarter and Six-Month Period Ended June 30, 2024
-
On achieves another record top-line quarter, resulting in over
CHF 2 billion net sales for the last twelve month period. On's total net sales in Q2 2024 reachedCHF 567.7 million , a growth of 27.8% year-over-year and of 29.4% on a constant currency basis. These results reflect the strength of On's multi-channel strategy across regions and products, with stand-out performances inAsia-Pacific and in apparel, growing by 73.7% and 63.0%, respectively. -
As a result of On's continued high share of full-price sales as well as lower freight rates, its second quarter 2024 gross profit margin reaches 59.9%, up from 59.5% in the prior year period. On's increased profitability is further reflected in the significant net income and adjusted EBITDA expansion versus the same period in the prior year, reaching
CHF 30.8 million andCHF 90.8 million , respectively. -
Based on the high demand for the On brand, further fueled by big brand-building moments over the past months, On reiterates its stated goals for the full year 2024. This includes the expectation to reach a full year constant currency growth rate of at least 30%, corresponding to reported net sales of
CHF 2.26 billion at current spot rates. On further continues to expect a gross profit margin of around 60% and an adjusted EBITDA margin in the range of 16.0 - 16.5% for the full year 2024. -
On continues to shape its vision to be the most premium global sportswear brand, rooted in performance, design and sustainability. In the past few weeks, On unveiled its groundbreaking LightSpray™ technology, announced its long-term partnership with Zendaya and celebrated exceptional performances by On athletes. True to On's multi-channel strategy, which includes expanding its own retail store footprint, the recent weeks also saw the opening of new On stores in
Paris andHong Kong .
Second Quarter 2024 Financial and Operating Metrics
Key highlights for the three-month period ended
-
net sales increased by 27.8% to
CHF 567.7 million , or by 29.4% on a constant currency basis; -
net sales through the direct-to-consumer ("DTC") sales channel increased by 28.1% to
CHF 209.4 million , or by 30.4% on a constant currency basis; -
net sales through the wholesale sales channel increased by 27.6% to
CHF 358.2 million , or by 28.8% on a constant currency basis; -
net sales in
Europe ,Middle East andAfrica (“EMEA”),Americas andAsia-Pacific increased by 21.8% toCHF 138.4 million , 24.8% toCHF 370.0 million and 73.7% toCHF 59.2 million , respectively; -
net sales in EMEA,
Americas , andAsia-Pacific increased by 22.2%, 25.8% and 84.7% on a constant currency basis, respectively; -
net sales from shoes, apparel and accessories increased by 26.7% to
CHF 542.5 million , 63.0% to 21.9 million and 23.6% to 3.3 million, respectively; - net sales from shoes, apparel and accessories increased by 28.2%, 66.6%, 26.3% on a constant currency basis, respectively;
-
gross profit increased by 28.6% to
CHF 340.2 million fromCHF 264.5 million ; - gross profit margin increased to 59.9% from 59.5%;
-
net income increased by 834.3% to
CHF 30.8 million fromCHF 3.3 million ; - net income margin increased to 5.4% from 0.7%;
- basic earnings per share (“EPS”) Class A (CHF) increased to 0.10 from 0.01;
- diluted EPS Class A (CHF) increased to 0.09 from 0.01;
-
adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") increased by 44.7% to
CHF 90.8 million fromCHF 62.7 million ; - adjusted EBITDA margin increased to 16.0% from 14.1%;
-
adjusted net income increased to
CHF 46.9 million fromCHF 11.7 million ; - adjusted basic EPS Class A (CHF) increased to 0.15 from 0.04; and
- adjusted diluted EPS Class A (CHF) increased to 0.14 from 0.04.
Key highlights for the six-month period ended
-
net sales increased by 24.4% to
CHF 1,075.9 million ; or by 29.3% on a constant currency basis; -
net sales through the DTC sales channel increased by 33.1% to
CHF 399.9 million , or by 38.7% on a constant currency basis; -
net sales through the wholesale sales channel increased by 19.8% to
CHF 675.9 million , or by 24.3% on constant currency basis; -
net sales in EMEA,
Americas andAsia-Pacific increased by 13.9% toCHF 264.6 million , 23.4% toCHF 699.7 million and 70.5% toCHF 111.6 million , respectively; -
net sales in EMEA,
Americas , andAsia-Pacific increased by 16.3%, 28.0% and 86.8% on a constant currency basis, respectively; -
net sales from shoes, apparel and accessories increased by 23.9% to
CHF 1,027.1 million , 37.2% toCHF 41.6 million and 30.3% toCHF 7.1 million , respectively; - net sales from shoes, apparel and accessories increased by 28.8%, 43.1%, 36.3% on a constant currency basis, respectively;
-
gross profit increased by 26.3% to
CHF 643.6 million fromCHF 509.4 million ; - gross profit margin increased to 59.8% from 58.9%;
-
net income increased by 156.5% to
CHF 122.2 million fromCHF 47.7 million ; - net income margin increased to 11.4% from 5.5%;
- basic EPS Class A (CHF) increased to 0.38 from 0.15;
- diluted EPS Class A (CHF) increased to 0.37 from 0.15;
-
adjusted EBITDA increased by 36.0% to
CHF 168.2 million fromCHF 123.7 million ; - adjusted EBITDA margin increased to 15.6% from 14.3%;
-
adjusted net income increased to
CHF 153.4 million fromCHF 60.5 million ; - adjusted basic EPS Class A (CHF) increased to 0.48 from 0.19; and
- adjusted diluted EPS Class A (CHF) increased to 0.47 from 0.19.
Key highlights as of
-
cash and cash equivalents increased by 32% to
CHF 652.4 million fromCHF 494.6 million ; and -
net working capital increased by 14.3% to
CHF 567.1 million fromCHF 496.2 million .
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis are non-IFRS measures used by us to evaluate our performance. Furthermore, we believe these non-IFRS measures enhance investors' understanding of our financial and operating performance from period to period because they enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS. For a detailed description and a reconciliation to the nearest IFRS measure, see the section below titled “Non-IFRS Measures.”
Outlook
On has experienced a very strong first half of 2024, with two consecutive record top-line quarters and continued strong demand across channels, regions and product categories. From highly successful product launches and groundbreaking innovations to athlete success stories and authentic brand partnerships, On has further ignited its brand momentum in the first six months of 2024 with various initiatives that are converting to higher brand awareness and inspiring fans to Dream On.
As a result, On is reiterating its full year expectation of at least 30% net sales growth on a constant currency basis. Considering the recent strength of the Swiss Franc and assuming spot rates persist at current levels for the remainder of the year, this implies reported net sales of at least
Considering the results in the first half of 2024, On additionally remains well on track to reach its profitability ambitions for the full year, and expects to achieve a gross profit margin of around 60% and an adjusted EBITDA margin of 16.0 - 16.5%.
Other than with respect to IFRS net sales and gross profit margin, On only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. As a result, we are not able to forecast with reasonable certainty all deductions needed in order to provide a reconciliation to net income. The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below and in our filings with the
Conference Call Information
A conference call to discuss second quarter results is scheduled for
Conference ID: 3575796
Additionally, a live webcast of the conference call will be available on the Company's investor relations website and under the following link. Following the conclusion of the call, a replay of the conference call will be available on the Company's website.
About On
On was born in the Swiss Alps in 2010 with the mission to ignite the human spirit through movement – a mission that still guides the brand today. Fourteen years after market launch, On delivers industry-disrupting innovation in premium footwear, apparel and accessories for high-performance running, outdoor, training, all-day activities and tennis. On’s award-winning CloudTec® innovation, purposeful design and groundbreaking strides within the circular economy have attracted a fast-growing global fan base – inspiring humans to explore, discover and Dream On.
On is present in more than 60 countries globally and engages with a digital community on www.on.com.
Non-IFRS Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis are financial measures that are not defined under IFRS. We use these non-IFRS measures when evaluating our performance, including when making financial and operating decisions, and as a key component in the determination of variable incentive compensation for employees. We believe that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures enhance investor understanding of our financial and operating performance from period to period, because they exclude share-based compensation which is not viewed by management as part of our ongoing operations and performance, enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. In particular, we believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income and net working capital are measures commonly used by investors to evaluate companies in the sportswear industry.
However, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS and may not be comparable to similarly titled non-IFRS measures used by other companies. The tables below reconcile each non-IFRS measure to its most directly comparable IFRS measure.
As noted above, we do not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The amount of these deductions may be material and, therefore, could result in projected net income being materially less than projected adjusted EBITDA. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this press release.
Net sales on a constant currency basis is a non-IFRS financial measure and should be viewed as a supplement to our results under IFRS. Net sales on a constant currency basis represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales within our results, to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations.
Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the
Among other things, On’s quotations from management in this press releases and other written materials, as well as On’s strategic and operational plans, contain forward-looking statements. On may also make written or oral forward-looking statements in its periodic reports to the
Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified under the section titled “Risk Factors” in our Annual Report. These risks and uncertainties include factors relating to: the strength of our brand and our ability to maintain our reputation and brand image; our ability and the ability of our independent manufacturers and other suppliers to follow responsible business practices; our ability to implement our growth strategy; the concentration of our business in a single, discretionary product category, namely footwear, apparel and accessories; our ability to continue to innovate and meet consumer expectations; changes in consumer tastes and preferences including in products and sustainability, and our ability to connect with our consumer base; our generation of net losses in the past and potentially in the future; our limited operating experience in new markets; our ability to open new stores at locations that will attract customers to our premium products; our ability to compete and conduct our business in the future; health epidemics, pandemics and similar outbreaks, including the COVID-19 pandemic; general economic, political, demographic and business conditions worldwide, including geopolitical uncertainty and instability, such as the
Source: On
Category: Earnings
Consolidated Financial Information
Unaudited interim condensed consolidated statements of income
|
|
Three-month period ended |
|
Six-month period ended |
||||
(CHF in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
567.7 |
|
444.3 |
|
1,075.9 |
864.5 |
|
Cost of sales |
|
(227.4) |
|
(179.8) |
|
(432.3) |
|
(355.1) |
Gross profit |
|
340.2 |
|
264.5 |
|
643.6 |
|
509.4 |
Selling, general and administrative expenses |
|
(292.9) |
|
(225.1) |
|
(557.7) |
|
(427.7) |
Operating result |
|
47.3 |
|
39.4 |
|
85.8 |
|
81.7 |
Financial income |
|
5.8 |
|
4.3 |
|
11.2 |
|
6.4 |
Financial expenses |
|
(5.9) |
|
(1.9) |
|
(10.8) |
|
(3.6) |
Foreign exchange gain / (loss) |
|
(4.5) |
|
(48.5) |
|
72.3 |
|
(39.7) |
Income / (loss) before taxes |
|
42.7 |
|
(6.7 ) |
|
158.5 |
|
44.8 |
Income tax benefit / (expense) |
|
(11.8) |
|
10.0 |
|
(36.3) |
|
2.9 |
Net income |
|
30.8 |
|
3.3 |
|
122.2 |
|
47.7 |
Earnings per share |
|
|
|
|
|
|
|
|
Basic EPS Class A (CHF) |
|
0.10 |
|
0.01 |
|
0.38 |
|
0.15 |
Basic EPS Class B (CHF) |
|
0.01 |
|
— |
|
0.04 |
|
0.01 |
|
|
|
|
|
|
|
|
|
Diluted EPS Class A (CHF) |
|
0.09 |
|
0.01 |
|
0.37 |
|
0.15 |
Diluted EPS Class B (CHF) |
|
0.01 |
|
— |
|
0.04 |
|
0.01 |
Unaudited interim condensed consolidated balance sheets
(CHF in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
652.4 |
|
494.6 |
Trade receivables |
|
314.0 |
|
204.8 |
Inventories |
|
401.3 |
|
356.5 |
Other current financial assets |
|
38.2 |
|
34.2 |
Other current operating assets |
|
95.5 |
|
61.2 |
|
|
|
|
|
Current assets |
|
1,501.5 |
|
1,151.3 |
|
|
|
|
|
Property, plant and equipment |
|
111.7 |
|
93.6 |
Right-of-use assets |
|
319.1 |
|
214.0 |
Intangible assets |
|
61.7 |
|
64.6 |
Deferred tax assets |
|
51.7 |
|
69.5 |
|
|
|
|
|
Non-current assets |
|
544.3 |
|
441.7 |
|
|
|
|
|
Assets |
|
2,045.8 |
|
1,593.0 |
|
|
|
|
|
Trade payables |
|
148.2 |
|
65.1 |
Other current financial liabilities |
|
76.4 |
|
53.4 |
Other current operating liabilities |
|
249.9 |
|
156.4 |
Current provisions |
|
16.8 |
|
7.1 |
Income tax liabilities |
|
12.9 |
|
23.5 |
|
|
|
|
|
Current liabilities |
|
504.1 |
|
305.6 |
|
|
|
|
|
Employee benefit obligations |
|
1.6 |
|
2.2 |
Non-current provisions |
|
11.4 |
|
10.0 |
Other non-current financial liabilities |
|
288.1 |
|
190.3 |
Deferred tax liabilities |
|
9.7 |
|
10.5 |
|
|
|
|
|
Non-current liabilities |
|
310.8 |
|
212.9 |
|
|
|
|
|
Share capital |
|
33.5 |
|
33.5 |
|
|
(26.7) |
|
(26.7) |
Capital reserves |
|
1,169.7 |
|
1,140.8 |
Other reserves |
|
(4.4) |
|
(9.8) |
Retained earnings / (losses) |
|
58.9 |
|
(63.3) |
|
|
|
|
|
Equity |
|
1,231.0 |
|
1,074.5 |
|
|
|
|
|
Equity and liabilities |
|
2,045.8 |
|
1,593.0 |
Unaudited interim condensed consolidated statements of cash flows
|
|
Six-month period ended |
||
(CHF in millions) |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
122.2 |
|
47.7 |
Adjustments for: |
|
|
|
|
Share-based compensation |
|
22.9 |
|
8.5 |
Employee benefit expenses |
|
0.9 |
|
(1.7) |
Depreciation and amortization |
|
48.5 |
|
28.0 |
Loss on disposal of assets |
|
— |
|
0.4 |
Interest income and expenses |
|
(3.6) |
|
(3.8) |
Net exchange differences |
|
(61.3) |
|
35.3 |
Income taxes |
|
36.3 |
|
(2.9) |
Change in working capital |
|
(32.2) |
|
(164.6) |
Trade receivables |
|
(98.0) |
|
(84.3) |
Inventories |
|
(16.8) |
|
(60.0) |
Trade payables |
|
82.7 |
|
(20.3) |
Change in other operating assets / liabilities |
|
57.3 |
|
57.2 |
Change in provisions |
|
10.5 |
|
4.7 |
Interest received |
|
10.9 |
|
6.1 |
Income taxes paid |
|
(28.9) |
|
(11.6) |
Cash inflow from operating activities |
|
183.5 |
|
3.3 |
|
|
|
|
|
Purchase of tangible assets |
|
(23.7) |
|
(19.0) |
Purchase of intangible assets |
|
(2.3) |
|
(2.0) |
Cash (outflow) from investing activities |
|
(26.0 ) |
|
(21.0 ) |
|
|
|
|
|
Payments of lease liabilities |
|
(23.7) |
|
(10.2) |
Proceeds on sale of treasury shares related to share-based compensation |
|
5.2 |
|
5.7 |
Interest paid |
|
(7.3) |
|
(2.3) |
Cash (outflow) from financing activities |
|
(25.8 ) |
|
(6.7 ) |
|
|
|
|
|
Change in net cash and cash equivalents |
|
131.7 |
|
(24.3 ) |
Net cash and cash equivalents at |
|
494.6 |
|
371.0 |
Net impact of foreign exchange rate differences |
|
26.2 |
|
(9.6) |
Net cash and cash equivalents at |
|
652.4 |
|
337.1 |
Reconciliation of Non-IFRS measures
Adjusted EBITDA and Adjusted EBITDA Margin
The table below reconciles net income to adjusted EBITDA for the periods presented. Adjusted EBITDA margin is equal to adjusted EBITDA for the period presented as a percentage of net sales for the same period.
|
Three-month period ended |
Six-month period ended |
||||
(CHF in millions) |
2024 |
2023 |
% Change |
2024 |
2023 |
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
30.8 |
3.3 |
834.3 % |
122.2 |
47.7 |
156.5 % |
Exclude the impact of: |
|
|
|
|
|
|
Income taxes |
11.8 |
(10.0) |
218.5% |
36.3 |
(2.9) |
1351.6% |
Financial income |
(5.8) |
(4.3) |
36.0% |
(11.2) |
(6.4) |
75.7% |
Financial expenses |
5.9 |
1.9 |
213.9% |
10.8 |
3.6 |
200.6% |
Foreign exchange result |
4.5 |
48.5 |
(90.7)% |
(72.3) |
39.7 |
(282.1)% |
Depreciation and amortization |
26.3 |
14.2 |
85.5% |
48.5 |
28.0 |
73.3% |
Share-based compensation(1) |
17.1 |
9.1 |
88.3% |
33.9 |
14.0 |
141.9% |
Adjusted EBITDA |
90.8 |
62.7 |
44.7 % |
168.2 |
123.7 |
36.0 % |
Adjusted EBITDA Margin |
16.0% |
14.1% |
13.3% |
15.6% |
14.3% |
9.3% |
(1) Management excludes share-based compensation expenses as we do not consider these expenses reflective of our ongoing operations and performance. |
Adjusted Net Income, Adjusted Basic EPS and Adjusted Diluted EPS
We use adjusted net income, adjusted basic EPS and adjusted diluted EPS as measures of operating performance in conjunction with related IFRS measures.
Adjusted basic EPS is used in conjunction with other non-IFRS measures and excludes certain items (as listed below) in order to increase comparability of the metric from period to period, which we believe makes it useful for management, our audit committee and investors to assess our financial performance over time.
Diluted EPS is calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period on a fully diluted basis. For the purpose of operational performance measurement, we calculate adjusted net income, adjusted basic EPS and adjusted diluted EPS in a manner that fully excludes the impact of any costs related to share-based compensation and includes the tax effect on the tax deductible portion of the non-IFRS adjustments.
The table below provides a reconciliation between net income to adjusted net income, adjusted basic EPS and adjusted diluted EPS for the periods presented:
|
|
Three-month period ended |
||||||
(CHF in millions, except per share data) |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
|
Class A |
|
Class B |
|
Class A |
|
Class B |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
27.5 |
|
3.3 |
|
2.9 |
|
0.4 |
Exclude the impact of: |
|
|
|
|
|
|
|
|
Share-based compensation(1) |
|
15.3 |
|
1.8 |
|
8.1 |
|
1.0 |
Tax effect of adjustments(2) |
|
(0.9) |
|
(0.1) |
|
(0.6) |
|
(0.1) |
Adjusted net income |
|
41.9 |
|
5.0 |
|
10.5 |
|
1.3 |
|
|
|
|
|
|
|
|
|
Weighted number of outstanding shares |
|
288,082,955 |
|
345,437,500 |
|
284,127,877 |
|
345,437,500 |
Weighted number of shares with dilutive effects |
|
3,430,738 |
|
12,467,091 |
|
3,464,956 |
|
11,792,673 |
Weighted number of outstanding shares (diluted and undiluted)(3) |
|
291,513,693 |
|
357,904,591 |
|
287,592,833 |
|
357,230,173 |
|
|
|
|
|
|
|
|
|
Adjusted basic EPS (CHF) |
|
0.15 |
|
0.01 |
|
0.04 |
|
— |
Adjusted diluted EPS (CHF) |
|
0.14 |
|
0.01 |
|
0.04 |
|
— |
(1) Management excludes share-based compensation expenses as we do not consider these expenses reflective of our ongoing operations and performance. | ||||||||
(2) The tax effect has been calculated by applying the local tax rate on the tax deductible portion of the respective adjustments. | ||||||||
(3) Weighted number of outstanding shares (diluted and undiluted) are presented herein in order to calculate Adjusted EPS as Adjusted net income for such periods. |
|
Six-month period ended |
|||||||
(CHF in millions, except per share data) |
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
|
Class A |
|
Class B |
|
Class A |
|
Class B |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
109.1 |
|
13.1 |
|
42.5 |
|
5.2 |
Exclude the impact of: |
|
|
|
|
|
|
|
|
Share-based compensation(1) |
|
30.3 |
|
3.6 |
|
12.5 |
|
1.5 |
Tax effect of adjustments(2) |
|
(2.5) |
|
(0.3) |
|
(1.1) |
|
(0.1) |
Adjusted net income |
|
136.9 |
|
16.4 |
|
53.9 |
|
6.6 |
|
|
|
|
|
|
|
|
|
Weighted number of outstanding shares |
|
287,985,587 |
|
345,437,500 |
|
283,859,171 |
|
345,437,500 |
Weighted number of shares with dilutive effects |
|
3,366,410 |
|
12,174,230 |
|
3,335,726 |
|
11,203,866 |
Weighted number of outstanding shares (diluted and undiluted)(3) |
|
291,351,998 |
|
357,611,730 |
|
287,194,897 |
|
356,641,366 |
|
|
|
|
|
|
|
|
|
Adjusted basic EPS (CHF) |
|
0.48 |
|
0.05 |
|
0.19 |
|
0.02 |
Adjusted diluted EPS (CHF) |
|
0.47 |
|
0.05 |
|
0.19 |
|
0.02 |
(1) Management excludes share-based compensation expenses as we do not consider these expenses reflective of our ongoing operations and performance. | ||||||||
(2) The tax effect has been calculated by applying the local tax rate on the tax deductible portion of the respective adjustments. | ||||||||
(3) Weighted number of outstanding shares (diluted and undiluted) are presented herein in order to calculate Adjusted EPS as Adjusted net income for such periods. |
Net sales on a constant currency basis is a non-IFRS measure which represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales in our results to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations. Below, we show net sales split out by sales channel, geography, and product, and include the reported percent change and the constant currency percent change.
Net sales by sales channel
The following table presents net sales by sales channel:
|
|
Three-month period ended |
||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale |
|
358.2 |
|
280.8 |
|
27.6% |
|
28.8% |
Direct-to-consumer |
|
209.4 |
|
163.5 |
|
28.1% |
|
30.4% |
Net sales |
|
567.7 |
|
444.3 |
|
27.8% |
|
29.4% |
|
|
Six-month period ended |
||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale |
|
675.9 |
|
564.0 |
|
19.8% |
|
24.3% |
Direct-to-consumer |
|
399.9 |
|
300.5 |
|
33.1% |
|
38.7% |
Net sales |
|
1,075.9 |
|
864.5 |
|
24.4% |
|
29.3% |
Net sales by geography
The following table presents net sales by geographic region (based on the location of the counterparty):
|
|
Three-month period ended |
||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
138.4 |
|
113.6 |
|
21.8% |
|
22.2% |
|
|
370.0 |
|
296.6 |
|
24.8% |
|
25.8% |
|
|
59.2 |
|
34.1 |
|
73.7% |
|
84.7% |
|
|
567.7 |
|
444.3 |
|
27.8% |
|
29.4% |
(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non- IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure. |
|
Six-month period ended |
|||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
264.6 |
|
232.2 |
|
13.9% |
|
16.3% |
|
|
699.7 |
|
566.8 |
|
23.4% |
|
28.0% |
|
|
111.6 |
|
65.5 |
|
70.5% |
|
86.8% |
|
|
1,075.9 |
|
864.5 |
|
24.4% |
|
29.3% |
Net sales by product
The following table presents net sales by product group:
|
|
Three-month period ended |
||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shoes |
|
542.5 |
|
428.2 |
|
26.7% |
|
28.2% |
Apparel |
|
21.9 |
|
13.4 |
|
63.0% |
|
66.6% |
Accessories |
|
3.3 |
|
2.7 |
|
23.6% |
|
26.3% |
|
|
567.7 |
|
444.3 |
|
27.8% |
|
29.4% |
|
|
Six-month period ended |
||||||
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
Constant Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shoes |
|
1,027.1 |
|
828.7 |
|
23.9% |
|
28.8% |
Apparel |
|
41.6 |
|
30.3 |
|
37.2% |
|
43.1% |
Accessories |
|
7.1 |
|
5.4 |
|
30.3% |
|
36.3% |
|
|
1,075.9 |
|
864.5 |
|
24.4% |
|
29.3% |
(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non- IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure. |
Net working capital is a financial measure that is not defined under IFRS. We use, and believe that certain investors and analysts, use this information to assess liquidity and management use of net working capital resources. We define net working capital as trade receivables, plus inventories, minus trade payables. This measure should not be considered in isolation or as a substitute for any standardized measure under IFRS. Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.
|
|
As of |
|
As of |
|
|
(CHF in millions) |
|
2024 |
|
2023 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade receivables |
|
314.0 |
|
204.8 |
|
53.3% |
Inventories |
|
401.3 |
|
356.5 |
|
12.6% |
Trade payables |
|
(148.2) |
|
(65.1) |
|
127.6% |
Net working capital |
|
567.1 |
|
496.2 |
|
14.3% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813242000/en/
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