On Running continues its record quarterly trend. The Zurich running shoe manufacturer recorded a sales increase of 52 percent.
A shoe from On Running. – Keystone
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the essentials in brief
On Running increased sales by 52 percent in the second quarter. Despite growth, net profit fell to 3.3 million francs. On is optimistic and increases the overall outlook to 1.76 billion francs.
The Zurich running shoe company On Running continued on its growth path in the second quarter of 2023. The bottom line, however, was that net profit fell significantly due to currency effects. The company, which is listed on the US stock exchange, is confident for the year as a whole and is raising its outlook again.
In the second quarter, On increased sales by 52 percent to CHF 444.3 million, as the company announced on Tuesday. On the basis of constant exchange rates, the plus was even 60 percent. A record quarter was thus posted for the sixth time in a row. All sales regions and product categories contributed to the increase.
Waiver of discounts has a positive effect
The company has also made another step forward in terms of the operating profit figures: the gross margin rose to 59.5 from almost 55.1 percent in the same quarter of the previous year. At CHF 62.7 million, the adjusted operating profit at the EBITDA level was almost twice as high as in the same period of the previous year. The corresponding margin rose to 14.1 percent from 10.8 percent. Compared to the previous year, the elimination of expensive air freight transport and the waiver of discounts would have had a positive effect.
Roger Federer also wears them – the shoes from On Running. (Archive image) – sda – KEYSTONE/ENNIO LEANZA
The bottom line, however, was that currency movements and, in particular, the weakness of the dollar weighed on the bill in the second quarter. Net profit fell to 3.3 million from 49.1 million in the previous year. This is mainly due to unrealized currency losses, says On.
Demand remains high
Looking ahead, the company, in which former tennis player Roger Federer also has a stake, remains optimistic. Demand remains strong across all channels, regions and products.
As a result, the Group is once again adjusting its outlook for the current full year upwards. The new target is 1.76 billion (previously 1.74 billion), with the negative currency effect already being taken into account, according to the report. On also aims to continue to achieve a gross profit margin and an adjusted EBITDA margin of 58.5 and 15.0 percent, respectively.
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2023-08-15 12:23:04
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