Sportswear brand On sees ‘significant progress’ in first full year as a public company

Swiss sportswear brand On has shared its financial results for the full-year ending 31 December 2022, surpassing the CHF 1 billion mark for the first time in its history.

The company's annual net sales increased 68.7% to £1 billion (CHF 1.2 billion), driven by sales growth of 70.9% in footwear, 30.2% in apparel and 48.3% in accessories.

By region, growth was led by a 87.7% sales rise in Asia-Pacific. In Europe, net sales grew 36.1% to £312 million (CHF 354.3 million).

Direct-to-consumer sales were up 61.4% to £392 million (CHF 445.1 million), whilst wholesale sales increased 73.1% to £685 million (CHF 777 million).

For the full year, ON also shared the following results:

• Gross profit up 59.2% to £604 million (CHF 684.9 million).
• Gross profit margin down to 56.0% from 59.4%.
• Adjusted EBITDA up 71.4% to £145 million (CHF 165.3 million).
• Adjusted EBITDA margin up to 13.5% from 13.3%.
• Net income up to £50 million (CHF 57.7 million) from a net loss of £150 million (CHF 170.2 million) in 2021.

Looking ahead, the company expects net sales of at least £1.4 billion (CHF 1.7 billion), a gross profit margin of approximately 58.5% and an adjusted EBITDA margin of 15.0% for the full year 2023.

David Allemann, Co-founder and Executive Co-Chairman of On, said: "We've often spoken about our commitment to drive growth while at the same time driving profitability. Finishing our first full year as a public company with net sales exceeding CHF1.2 billion and a net income of CHF57.7 million is a huge testament to the incredible work that our team continues to do."

Martin Hoffmann, Co-CEO and CFO of On, added: "We are heading into 2023 with a lot of momentum and in a position of strength. After navigating through a challenging 2022, including supply shortages, tight production capacities and disruption of global trade lanes, we are looking forward to a great year with largely normalised operations. We have made significant progress in many areas in the 18 months since our IPO, which will set us up for ongoing success and market share gains."

The trading update follows the opening of On's first UK store on London's Regent Street. The space presents the brand's full range of men's and women's collections for the first time.