On Holding Jogs Past Estimates in Q4

Core Insights - On Holding surpassed Wall Street's earnings and revenue expectations in Q4 2024, reporting adjusted EPS of 0.33 Swiss francs and revenue of 606.6 million Swiss francs [1][2] Financial Performance - Adjusted EPS for Q4 2024 was 0.33 Swiss francs, exceeding the estimate of 0.22 Swiss francs [2][3] - Revenue reached 606.6 million Swiss francs, a 35.7% increase from 447.1 million Swiss francs in Q4 2023, surpassing the estimate of 589.2 million Swiss francs [3][7] - Gross profit margin improved to 62.1%, up from 60.4% in Q4 2023 [3][6] - Net income was 89.5 million Swiss francs, a significant recovery from a loss of 26.8 million Swiss francs in Q4 2023 [3][7] Company Overview - On Holding, established in Zurich in 2010, is recognized for its innovative running shoes and high-performance sportswear, focusing on expanding its market reach through a diverse distribution network [4] - The company emphasizes innovation, frequently updating its product range with new technologies like LightSpray to differentiate itself in the competitive athletic wear market [5] Growth Segments - Direct-to-consumer sales surged by 43.4%, significantly contributing to the gross profit margin [6] - The wholesale segment also grew by 29.1%, indicating strong overall performance [7] - Apparel sales increased by 77.5% in Q4 2024, driven by successful product launches [7] Future Outlook - Management anticipates net sales growth of at least 27% in 2025, targeting 2.94 billion Swiss francs [8] - The company aims to maintain gross profit margins around 60.5% and an adjusted EBITDA margin between 17.0% and 17.5% [8] - On Holding plans to expand into emerging regions like Asia-Pacific, leveraging its brand development and consumer engagement strategies [9]