Sales rising: Business still going well at On

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From July to September, sales rose 47 percent to 480.5 million francs, the company said on Tuesday. Nine months later, sales had increased by 57 percent to 1.35 billion francs.

Sales rose 55 percent in the third quarter, rising particularly sharply in the direct-to-consumer (DTC) sales channel. Ten still generated two-thirds of its sales at retail, with growth of 43 percent. But its direction is clear. It is said that the Zurich company wants to grow faster in the DTC channel.

Finally, a high proportion of direct sales helps increase profitability. Gross margin increased from 57.1 percent to 59.9 percent in the third quarter; this was the highest level since the IPO two years ago. In addition to a higher DTC share, more favorable exchange rates and eliminating the extraordinary use of air transport would also have helped.

Adjusted operating profit (adjusted EBITDA) increased by 44 percent in the third quarter compared to the previous year, reaching 81.3 million. Net profit almost tripled compared to the same period last year, reaching 58.7 million.

The company, in which former tennis star Roger Federer also owns shares, looks quite optimistic when looking ahead. The outlook for the full year is being upgraded due to “strong” results.

In terms of sales, On is currently targeting 1.79 billion francs (previously 1.76 billion). The gross profit margin must also be “at least” 59 percent (previously 58.5). Adjusted EBITDA margin is currently expected to remain at 15 percent.

(SDA)

Source :Blick