Swiss-Based Sportswear Brand On Holding Chalks Out Long Term Outlook - What's On The Cards?

On Holding AG ONON disclosed an update on its strategic priorities and provided three-year and long-term financial targets.

Next Stage Growth Strategy: ONON continues to focus on growth in its core areas, including boosting market share, brand awareness in its communities, and performance credibility.

Also, the company aims to expand its premium multi-channel distribution and retail presence in China as well as establish its training community.

2023-2026 Outlook: ONON expects to double its 2023-2026 net sales to at least CHF 3.55 billion by 2026, reflecting a CAGR of over 26%. 

Moreover, the company anticipates to exceed 60% gross profit margin and increase its adjusted EBITDA margin to 18%+ by 2026. 

The company reaffirmed its previously provided outlook for 2023 of net sales of CHF 1.76 billion, gross profit margin of at least 58.5%, and adjusted EBITDA margin of 15.0%.

Long-term Guidance: The company disclosed the long-term targets to achieve an apparel share of 10%+, a retail share of 10%+, and a China share of 10%+ concerning its total net sales. 

Also, beyond 2026, ONON expects to grow net sales by 20% - 25% annually and exceed the adjusted EBITDA margin of 20%.

"We are extremely proud and pleased with how we have been able to successfully deliver on our mission and growth strategies over the past two years. The strength of our brand and products, our outstanding team and innovation capabilities, as well as the very large addressable market, give us numerous opportunities to grow," stated Marc Maurer, Co-CEO.

Also Read: On Holding - The Fastest Growth Story In Consumer Sector: Analyst

Price Action: ONON shares are trading lower by 5.73% at $24.50 on the last check Wednesday.

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