Investment Rating - The report assigns a rating of "Outperform" for On Holdings AG, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark [19]. Core Insights - For FY2025, On Holdings AG achieved record high revenue and gross margin, with net sales surpassing CHF 3 billion for the first time, reflecting a 30% year-on-year increase in reported currency and a 35.6% increase in fixed currency [2][8]. - The company raised its full-year guidance for 2026, projecting at least a 23% increase in net sales at fixed currency, with a compound annual growth rate of at least 30.5% from 2023 to 2026 [5][11]. - The DTC (Direct-to-Consumer) channel's share rose to 41.8%, up 110 basis points year-on-year, indicating strong growth across various regions, particularly in APAC [2][8]. Summary by Sections Financial Performance - In FY2025, net profit was CHF 203 million, down 15.9% year-on-year, while gross margin reached 62.8% and adjusted EBITDA margin hit a record high of 18.8% [2][8]. - For Q4 FY2025, net sales reached CHF 743.8 million, a 22.6% increase year-on-year, with a gross margin of 63.9%, up 180 basis points from the previous year [3][9]. Regional Performance - The Americas, EMEA (Europe, Middle East, and Africa), and APAC regions all showed robust expansion, with APAC being the standout performer, achieving a 70.8% increase in net sales in reported currency [4][10]. - By region, net sales in the Americas totaled CHF 434.3 million, up 12.8% in reported currency, while EMEA reached CHF 183 million, up 24.2% [10]. Product Categories - Multi-category expansion significantly contributed to performance growth, with apparel sales increasing by 75.5% and accessories by 135.1% on a fixed currency basis [2][8]. - Footwear net sales reached CHF 687.3 million, reflecting a 20.8% increase in reported currency, driven by high-performance running shoes and popular product lines [10].

Investment Rating - The report assigns a rating of "Outperform" for On Holdings AG, indicating an expected total return over the next 12-18 months that exceeds the return of its relevant broad market benchmark [19]. Core Insights - For FY2025, On Holdings AG achieved record high net sales exceeding CHF 3 billion, with a reported currency increase of 30% year-on-year and a fixed currency increase of 35.6%. The gross margin reached 62.8%, and adjusted EBITDA margin hit a historical high of 18.8%. However, net profit declined by 15.9% year-on-year to CHF 203 million [2][8]. - The company raised its full-year guidance for 2026, expecting net sales to increase by at least 23% at fixed currency, with a compound annual growth rate of at least 30.5% from 2023 to 2026. The gross margin is projected to rise to at least 63% compared to 2025, driven by brand appeal and operational efficiency [5][11]. Summary by Sections Financial Performance - In FY2025, net sales reached CHF 3.0 billion, with a gross margin of 62.8% and adjusted EBITDA margin of 18.8%. Net profit was CHF 203 million, down 15.9% year-on-year. Cash reserves exceeded CHF 1 billion, and inventory stood at CHF 419.8 million [2][8]. - For Q4 FY2025, net sales were CHF 743.8 million, a 22.6% increase year-on-year, with a gross margin of 63.9%, up 180 basis points from the previous year [3][9]. Regional Performance - The Americas, EMEA, and APAC regions all showed robust expansion. DTC channel sales grew approximately 20%, with APAC being the core growth engine, achieving a 70.8% increase in net sales [4][10]. - By region, net sales in the Americas totaled CHF 434.3 million, up 12.8% at reported currency. EMEA net sales reached CHF 183 million, up 24.2%, while APAC net sales hit CHF 126.5 million, up 70.8% [10]. Future Outlook - The company anticipates that DTC business will outpace wholesale business, with apparel sales expected to grow significantly faster than the overall level. The reported net sales target for 2026 is at least CHF 3.44 billion [5][11]. - The company expects a gross margin for FY2026 to hit a new record high, with an adjusted EBITDA margin forecasted between 18.5% to 19% [11].

Core Viewpoint - Anta's multi-brand strategy has become a significant driver of the company's growth, showcasing its ability to maintain high revenue growth despite challenging market conditions [2][5][20]. Group 1: Financial Performance - In the first half of 2025, Anta Group achieved a revenue growth of 14.3%, reaching 38.54 billion yuan, further solidifying its dominance in the domestic sports goods sector [3]. - Revenue from Anta and FILA brands was 16.95 billion yuan and 14.18 billion yuan, with year-on-year growth rates of 5.4% and 8.6% respectively; other brands, including Descente and Kolon, generated 7.41 billion yuan, marking a significant growth of 61.1% [3][5]. - Anta's overall gross margin and operating profit margin were 63.4% and 26.3%, with FILA showing higher margins at 68% and 27.7% [3]. Group 2: Multi-Brand Strategy - Anta's acquisition of the German outdoor brand Jack Wolfskin for 290 million USD in the first half of 2025 exemplifies its commitment to expanding its multi-brand portfolio [5]. - The company reported a net cash inflow of 10.93 billion yuan in the first half of 2025, up from 8.50 billion yuan in the same period last year, indicating strong cash flow to support its multi-brand strategy [5]. - Anta's DTC (Direct-to-Consumer) revenue now accounts for nearly 90% of its total revenue, showcasing its successful transition from a traditional wholesale model [10]. Group 3: Retail and Brand Management - Anta's "brand + retail" business model emphasizes the importance of controlling the end consumer experience to effectively manage brand value [9][12]. - The company has established a robust retail response mechanism and method system, allowing different brands to share resources and achieve synergy [12]. - Anta's management structure allows each brand's CEO to be responsible for profitability while maintaining strategic alignment with the overall group goals [15]. Group 4: Global Expansion - Anta's global strategy has entered its third phase, with successful international acquisitions and a focus on adapting to regional market characteristics [24][25]. - The company has expanded its brand presence in Southeast Asia, the Middle East, Africa, and North America, employing tailored strategies for each market [24]. - Anta's approach to internationalization serves as a reference model for other Chinese retail brands seeking to enter global markets [25][26].