On Holding AG: A Strong Finish to 2024 and Bright Prospects for 2025

On Holding AG (NYSE: ONON) delivered a robust set of financial results for the fourth quarter and full year 2024, capping off a year marked by significant growth and strategic achievements. The company's strong performance was driven by its strategic focus on brand awareness and direct-to-consumer (DTC) expansion, which contributed to a record high DTC share of 48.8% of net sales in the fourth quarter. This expansion, coupled with strong full-price demand throughout the holiday season, resulted in a record-breaking gross profit margin of 62.1% in Q4 2024, the highest in the company's public history.

Key highlights for fiscal year 2024 compared to fiscal year 2023 included:

* Net sales increased by 29.4% to CHF 2,318.3 million, or by 33.2% on a constant currency basis.
* Gross profit margin of 60.6%, net income of CHF 242.3 million, and an adjusted EBITDA margin of 16.7%.
* A strong cash balance nearing CHF 1 billion.

In the fourth quarter, On's net sales increased to CHF 606.6 million, growing by 35.7% year-over-year on a reported basis and 40.6% on a constant currency basis. This strong performance was supported by On's ability to convert rapid brand awareness growth into increased traffic on its e-commerce channel and global retail stores.

Looking ahead to 2025, On Holding AG expects to achieve a constant currency growth rate of at least 27%, translating to net sales of at least CHF 2.94 billion at current spot rates. The company further anticipates a gross profit margin of around 60.5% for the full year and an adjusted EBITDA margin in the range of 17.0% - 17.5%.

On Holding AG achieved several significant milestones in 2024, including the unveiling of its innovative LightSpray™ technology, the expansion of its global retail footprint to nearly 50 own stores, and surpassing CHF 100 million in apparel net sales. As On celebrates its 15th anniversary and enters the second year of its Dream On 2026 strategy, it aims to build on its broad-based momentum and further establish its position as the brand of choice for customers seeking the unique combination of performance, design, and sustainability.



On's success can be attributed to its commitment to innovation, strategic focus on brand awareness and DTC expansion, and effective execution of its Dream On 2026 strategy. With a strong foundation built in 2024, On Holding AG is well-positioned to maintain its momentum and achieve its 2025 financial targets. Investors can expect the company to continue creating memorable brand experiences on the world's biggest stages and delivering an even more premium experience at every touchpoint to its fans.