Still selling like crazy: sneakers from the Swiss company ON. (Archive image) KEYSTONE/GAETAN BALLY sda-ats This content was published on November 14, 2023 – 11:18 November 14, 2023 – 11:18 (Keystone-SDA) The Zurich running shoe company On remains on a growth path after nine months. The company, which is listed on the New York Stock Exchange, also sold significantly more shoes in the third quarter. Direct sales to customers in particular increased. From July to September, sales rose by 47 percent to 480.5 million francs, the company announced on Tuesday. After nine months, sales increased by 57 percent to 1.35 billion francs. With an increase of 55 percent, sales rose sharply in the third quarter, particularly in the direct-to-consumer (DTC) sales channel. On still made two thirds of its sales in retail, where growth was 43 percent. But the direction is clear. The Zurich company wants to grow faster in the DTC channel, it is said.
Highest gross margin since IPO
Last but not least, the higher proportion of direct sales helps to increase profitability. The gross margin rose to 59.9 from 57.1 percent in the third quarter, the highest since the IPO two years ago. In addition to the higher DTC share, more favorable exchange rates and the elimination of the extraordinary use of air freight would also have helped. Adjusted operating profit (adjusted EBITDA) rose 44 percent to 81.3 million in the third quarter compared to the previous year. At 58.7 million, net profit was almost three times as high as in the same period last year.
More sales expected
Looking ahead, the company, in which former tennis star Roger Federer also has a stake, remains very optimistic. Due to the “strong” results, the outlook for the full year is being increased. In terms of sales, On is now targeting 1.79 billion francs (previously 1.76 billion). The gross margin should also be “at least” 59 percent (previously 58.5). The adjusted EBITDA margin is currently expected to remain at 15 percent.
2023-11-14 22:28:43
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