Running shoe company Ten sold more at the start of the year

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Zurich-based running shoe company On Running sold even more shoes in the first quarter of 2023. The company also became more profitable. The company, which is listed on the US stock market, is now more confident for the whole year.

On Tuesday, Ten increased its sales by 78 percent to 420 million francs from January to March. That’s the highest quarterly income Ten has ever seen. All sales regions and product categories contributed to the increase.

At the same time, the company has become more profitable. Gross margin improved from just under 52 percent to a good 58 percent. Ten justifies this with the normalization of supply chains. Air freight deliveries are therefore said to be no longer necessary. Expensive air transport was still putting pressure on profits in the first quarter of 2022.

Adjusted EBITDA at CHF 61 million was almost four times higher than the same period last year, with the corresponding margin increasing from 6.7 percent to 14.5 percent. As a result, On’s net profit tripled to 44.4 million.

Billions of planned profits

The company, in which former tennis player Roger Federer (41) also owns shares, is optimistic about the future. The first quarter went better than expected and they say their order book is well filled for the second half of the year.

The group as a whole is upgrading its outlook for the current year. It should be at least 1.74 billion. In March, Ten was still expecting at least 1.7 billion. In the previous year, 2022, the billion limit was exceeded for the first time with 1.22 billion.

Full-year gross margin is expected to be at least 58.5 percent, which translates to a gross profit of just over one billion. Focusing on profitable growth and economies of scale, On also plans to continue to achieve an adjusted EBITDA margin of 15 percent. (SDA/sfa)

Source :Blick