Swiss brand On ups full-year outlook on strong Q3 sales

Swiss performance brand On has upped its full-year guidance following a jump in sales in the third quarter of the year.

The Zürich-based company, which floated on the New York Stock Exchange last September, made net sales of 328 million Swiss francs (CHF) in the three months to September 30, up 50.4 percent from a year earlier.

Sales through wholesale were up 55.6 percent year-over-year, while direct-to-consumer (DTC) sales increased 40.7 percent.

“The momentum of the On brand shows no signs of slowing,” said co-founder and executive co-chair David Allemann in a statement.

“This quarter has seen On reach more new fans than ever before with our mix of innovative performance footwear and apparel, powerful marketing campaigns and immersive shopping experiences,” he said.

On ups guidance

Breaking it down by geography, sales in North America - On’s largest market - increased 57.1 percent to CHF 176.3 million, while sales in Europe were up 31.8 percent to CHF 116.5 million.

Sales in its smaller markets, Asia-Pacific and the Rest of the World, surged 85.2 percent to CHF 24.2 million and 150 percent to CHF 11 million, respectively.

The company’s net income for the quarter increased to CHF 20.6 million from CHF 13 million a year earlier.

Based on its Q3 results, On has upped its full-year outlook. It now expects net sales of CHF 1.125 billion, up from its previous guidance of CHF 1.1 billion.

The company also upped its adjusted EBITDA target to CHF 148 million, up from CHF 145 million, and reiterated its adjusted EBITDA margin of 13.2 percent.

This marks the second consecutive quarter On has upped its full-year guidance after the brand more than tripled its Q2 net profit.