On Holding AG's gross margin exceeds 62% in Q4 2024

Recently, the Swiss sportswear company On Holding AG announced its financial performance for the full year and fourth quarter of 2024. The annual net sales increased by 29.4% year-on-year to 2.3183 billion Swiss francs (approximately 19.1 billion yuan), with a growth of 33.2% at constant exchange rates. In terms of profitability, the gross margin for 2024 rose from 59.6% to 60.6%, and net profit surged by 204.5% year-on-year to 242.3 million Swiss francs, while adjusted EBITDA increased by 40.0% year-on-year to 387.6 million Swiss francs.

On's performance in the fourth quarter of 2024 was particularly impressive, with net sales growing by 35.7% year-on-year to 606.6 million Swiss francs (a 40.6% increase at constant exchange rates), and a gross margin of 62.1%, reaching a historical high and the highest level since the company's IPO. Net profit skyrocketed by 434.6% to 89.5 million Swiss francs, a significant turnaround from a loss of 26.8 million Swiss francs in the same period of 2023. Additionally, the proportion of direct-to-consumer (DTC) sales in the fourth quarter also set a record, accounting for 48.8% of net sales.

The strong performance in 2024 surpassed expectations across all metrics, reflecting On's assessment of its performance over the past year. From 1.22 billion Swiss francs in 2022 to 1.79 billion Swiss francs in 2023, and then to 2.32 billion Swiss francs in 2024, On has taken a significant step forward in just two years, nearing the achievement of doubling its revenue.

2025 marks the 15th anniversary of On's establishment and the second year of its "Dream On 2026" strategy. With two consecutive years of outstanding results, On is filled with optimism for the future. In its financial report, On projected continued rapid growth in 2025, aiming to bring revenue close to 3 billion Swiss francs.

From a global consumer market perspective, although the Asia-Pacific region showed significant growth, the Americas remain On's unshakeable foundation, with net sales reaching 1.48 billion Swiss francs and growing over 30%, accounting for more than 60% of total sales. Following this are the European, Middle Eastern, and African markets, which grew by 20% to 580 million Swiss francs. The Asia-Pacific region continued to maintain high growth, increasing by 96% to 260 million Swiss francs.

In terms of specific sports equipment categories, footwear remains the backbone, with significant growth in apparel and accessories. The financial report indicates that net sales of On's footwear products reached 2.2 billion Swiss francs, making up 95% of total sales. Apparel and accessories grew by 51% and 54%, respectively, with net sales reaching 100 million and 17.7 million Swiss francs.