The Swiss sporting goods provider On Holding AG exceeded market expectations with a significant increase in profits in the third quarter of the 2023 financial year. Sales also grew strongly again. In view of the surprisingly good results, the sneaker specialist raised its annual forecasts for sales and gross margin on Tuesday.
In the months of July to September, sales reached 480.5 million Swiss francs (497.2 million euros), exceeding the level of the previous year’s quarter by 46.5 percent. In the EMEA region, which includes Europe, the Middle East and Africa, revenues rose by 19.9 percent to 144.0 million Swiss francs, in the Americas by 60.5 percent to 294.9 million Swiss francs and in the Asia-Pacific Space even increased by 71.5 percent to 41.6 million Swiss francs.
Profit was also significantly higher than in the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects grew by 44.3 percent to 81.3 million Swiss francs. Net profit jumped from 20.6 to 58.7 million Swiss francs (60.7 million euros), well above analysts’ forecasts.
The sneaker specialist is increasing its sales target for 2023
In the first nine months of the current year, sales amounted to around 1.34 billion Swiss francs, which corresponded to an increase of 57.2 percent compared to the same period last year. Net profit increased by 26.4 percent to 106.3 million Swiss francs.
Due to the recent strong results and good business in the first weeks of the final quarter, management increased its annual targets. For 2023, it now expects sales to grow by more than 46 percent to 1.79 billion Swiss francs. The gross margin forecast was raised to at least 59.0 percent. The target for the EBITDA margin adjusted for special effects remains unchanged at 15.0 percent because the company is now planning higher investments.