On Holding AG posted strong full-year 2024 results, exceeding its latest outlook across all metrics and driving ONON shares up over 7 percent in pre-market trading on Tuesday, March 4.

On Holding reports in the Swiss franc (CHF) currency.

Net sales for the year amounted to CHF 2.32 billion, reflecting a full-year growth rate of 29.4 percent on a reported basis and 33.2 percent on a constant currency (cc) basis. On said it achieved a gross profit margin of 60.6 percent, net income of CHF 242.3 million, and an adjusted EBITDA margin of 16.7 percent, and ended the year with a strong cash balance nearing CHF 1 billion.

“These results underscore On’s ability to drive continued strong growth alongside increasing profitability and significant cash flow generation,” the company said in a media release.

Fourth Quarter Summary
In the fourth quarter, On’s net sales increased 35.7 percent (+40.6 percent cc) to CHF 606.6 million. The company’s strong performance was reported to be supported by On’s ability to convert on the rapid rise in brand awareness worldwide.

“The significant brand momentum drove strong traffic to On’s e-commerce channel and global retail stores, resulting in a record high direct-to-consumer (DTC) share of 48.8 percent of net sales in the fourth quarter,” the company reported.

From a category perspective, net sales of Footwear increased by 33.6 percent (+38.5 percent cc) to CHF 568.8 million, Apparel net sales increased 77.5 percent (+82.5 percent cc) to CHF 32.6 million, and Accessories net sales increased 80.0 percent (+85.6 percent cc) to CHF 5.2 million in the fourth quarter.

On said it achieved a record-breaking gross profit margin of 62.1 percent in Q4 2024, the highest in the company’s public history, and a 1700 basis-point improvement year-over-year. Gross profit increased 39.5 percent to CHF 376.8 million in Q4 from CHF 270.2 million in Q4 2023.

Net income amounted to CHF 89.5 million, or 14.8 percent of net sales, in the fourth quarter, compared to a net loss of CHF 26.8 million, or negative 6.0 percent, in the prior-year Q4 period. Adjusted net income increased to CHF 107.7 million in Q4 from a loss of CHF 16.3 million in the prior-year quarter.

Basic EPS Class A (CHF) increased to CHF 0.28 in Q4 from a loss of CHF 0.08 per share in Q4 2023; diluted EPS Class A (CHF) increased to CHF 0.27 per share in Q4 from a loss of CHF 0.08 per share in the fourth quarter of 2023. Adjusted basic EPS Class A (CHF) increased to CHF 0.33 per share in Q4, compared to a CHF 0.05 loss per share in Q4 2023, and Adjusted diluted EPS Class A (CHF) increased to CHF 0.33 per share in Q4, compared to a loss of CHF 0.05 per share in the prior-year quarter.

Adjusted EBITDA increased by 38.3 percent to CHF 99.4 million, or 16.4 percent of net sales in Q4, compared to CHF 71.9 million, 16.1 percent of net sales in Q4 2023.

The company said it made significant strides in 2024 across all strategic building blocks, as outlined at its 2023 Investor Day, providing On with a stronger foundation than ever before, enabling continued strong growth and profitability expansion in 2025.

Outlook
Building on the financial results in 2024 ahead of guidance, On said it is tracking ahead of the trajectory implied by its mid-term targets outlined at the 2023 Investor Day.

In 2025, On said it is confident in its ability to continue on this path and achieve a constant-currency net sales growth rate of at least 27 percent for the full year. At current spot rates, this translates to full-year reported net sales of at least CHF 2.94 billion. Due to prior-year comparison dynamics and timing of key product launches, including the Cloud 6, On said it anticipates a higher growth rate in the first half of the year.

The company said that, supported by On’s premium brand positioning and the continued expansion of its DTC channel, and factoring in an anticipated foreign exchange headwind due to the strengthened U.S. dollar against the Swiss Franc, On expects to maintain its gross profit margin at around 60.5 percent for the full year 2025.

Driven by the strong gross profit margin and anticipated operational efficiency gains, On said it is steadily progressing toward its ambitious mid-term target of achieving an adjusted EBITDA margin of over 18 percent in 2026. In 2025, On anticipates to achieve a full year adjusted EBITDA margin in the range of 17.0 percent to 17.5 percent.

Images courtesy On Holding AG

See below for additional SGB Media coverage of the On Holding conference call, including executive commentary, tariff risk, regional details, and category details.

EXEC: On Brand Sees Retail Stores and Apparel as Keys to Growth; Tariff Exposure Limited