ONON Q3 FY24
2min read 
In the third quarter of 2024, On Holding AG (ONON) delivered an outstanding performance with total operating revenue reaching ¥171,170,000, a 27.28% increase year-over-year. This growth reflects the company's success in market demand, product innovation, and sales strategies, demonstrating its strong performance in the highly competitive athletic apparel industry.
Key Financial Metrics
Revenue Growth: The operating revenue for the third quarter of 2024 was ¥171,170,000, up 27.28% from ¥134,500,000 in the same period of 2023, indicating significant sales progress.
Direct-to-Consumer (DTC) Channel Development: Revenue from this channel grew by 49.8% year-over-year, accounting for 38.8% of total sales, showcasing On's successful market strategy in attracting more direct consumers.
New Product Launches: The introduction of new running shoes such as Cloud X4 and Cloudnova 2 in 2024 fueled sales growth.
Gross Margin Improvement: The gross margin reached 60.6%, up from 59.9% in the previous year, indicating On's effective sales management strategy of maintaining full-price sales and controlling costs.
Peer Comparison
Industry Overview: The athletic apparel and footwear industry is experiencing sustained growth, driven by fitness and leisure activities. Many companies in the sector are showing year-over-year revenue growth, reflecting increased consumer focus on healthy living and rising demand for sports products.
Peer Performance Analysis: On's revenue growth significantly exceeds the industry average, demonstrating its competitive advantage in the market. While brands like Anta and Xtep also achieved growth, On's 32.3% net sales growth rate highlights its favorable market position.
Summary
Overall, On Holding AG (ONON) exhibited excellent financial performance in the third quarter of 2024, primarily benefiting from increased market demand, successful new product launches, and effective marketing strategies. The company's strong performance in the direct-to-consumer sales channel underscores its competitiveness and potential in the market.
Opportunities
Sustained Market Demand: The trend towards active and healthy lifestyles is expected to continue driving On's sales growth.
New Product Line Expansion: Continuously launching innovative products to meet evolving consumer needs can help further increase market share.
International Expansion: Opening more flagship stores in global markets can enhance brand recognition and boost sales.
Enhanced Digital Marketing: Conducting marketing activities through digital platforms can attract more young consumers and expand the customer base.
Risks
Cost Pressure: Increased spending on store openings and marketing activities could impact net profit margins, necessitating careful cost management.
Intensifying Market Competition: Rapid growth of peer brands may lead to more intense market competition, affecting On's market share.
Changing Consumer Preferences: The brand needs to stay attuned to shifts in consumer demand to avoid inventory build-up and sales declines.
Economic Volatility Impact: Global economic uncertainties could affect consumer spending, thereby impacting On's sales performance.