- On Holding AG ONON reported first-quarter FY23 sales growth of 78.3% year-on-year to CHF 420.2 million, compared to CHF 235.7 million the previous year.
- The sportswear firm registered EPS of CHF 0.14 in the quarter versus CHF 0.04 last year.
- Strong brand momentum across all regions, channels, and product groups significantly improved the operational environment and product availability in the quarter.
- Also Read: On Holding Leaps Ahead: Analyst Applauds Inventory Availability And EBITDA Margin Goals For Sportswear Brand
- The company's net sales through the direct-to-consumer sales channel increased 64.3% to CHF 137.0 million, while net sales through the wholesale sales channel increased 86% to CHF 283.2 million.
- The gross profit margin for the quarter expanded 650 basis points to 58.3%, up from 51.8% in the prior year period, reflecting the normalized supply chain environment.
- Gross profit increased 100.6% to CHF 244.9 million from CHF 122.1 million.
- On's order book for the second half of the year is driven by existing and exciting upcoming product launches that are increasing the confidence of On in its growth aspirations for 2023.
- Cash and equivalents by quarter end stood at CHF 361.3 million.
- Outlook: On Holding raised its guidance for FY23 sales. Revenues are expected to exceed CHF 1.74 billion (prior view CHF 1.70 billion).
- On maintained its outlook for gross profit margin in 2023 to reach 58.5%, implying a gross profit of over CHF 1 billion.
- Price Action: ONON shares traded lower by 3.11% at $32.40 in premarket on the last check Tuesday.
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