Financial Data and Key Metrics Changes - On Holding AG achieved a significant milestone by crossing the CHF 3 billion revenue mark for the first time in 2025, with a reported growth rate of 30% year-over-year and 35.6% at constant currency [16][23] - The company reported a record gross profit margin of 62.8% and an adjusted EBITDA margin of 18.8%, exceeding their 2026 aspirations [16][30] - Cash flow generation improved, resulting in a cash position of over CHF 1 billion, marking the strongest cash position in the company's history [16][32] Business Line Data and Key Metrics Changes - The apparel business saw a remarkable 76% net sales growth at constant currency, indicating a successful expansion into multi-category offerings [13][21] - Accessories experienced a growth of 135.1%, contributing to a structural improvement in the premium mix and overall business profitability [21] - Performance running maintained strong momentum, supported by the Cloudsurfer franchise and the successful launch of the Cloudsurfer Max [28] Market Data and Key Metrics Changes - The Americas delivered net sales of CHF 434.3 million, growing 12.8% reported and 21.3% at constant currency, with nearly 50% of net sales driven by D2C channels [25] - Europe, Middle East, and Africa (EMEA) saw net sales reach CHF 183 million, increasing 24.2% year-over-year and 27.5% at constant currency [26] - Asia-Pacific delivered exceptional results with net sales of CHF 126.5 million, increasing 70.8% reported and 85.1% at constant currency, solidifying its role as a key growth driver [27] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on performance innovation, premium inspiration, and a complete expression of the brand [8][12] - A significant investment in R&D has led to a 1,000% increase in the R&D team, focusing on performance and feel for the movement class [8][9] - The company is expanding its retail footprint, with plans to scale to close to 20 countries, and opened 80 new stores in the past year [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum, with expectations for strong growth rates across all regions in 2026, particularly in the D2C channel [44][45] - The company anticipates a reported net sales target of at least CHF 3.44 billion for 2026, reflecting a significant elevation of ambition [38] - Management highlighted the importance of maintaining premium positioning and operational excellence as key to future growth [17][18] Other Important Information - The company is leveraging AI technology to enhance customer service and improve operational efficiency [12][13] - The LightSpray manufacturing technology is expected to democratize high-performance footwear, with a significant increase in production capacity [63][64] Q&A Session Summary Question: Expectations for growth across regions in 2026 - Management indicated strong product pipeline and innovation, expecting robust growth across all regions, particularly in North America and D2C channels [42][43] Question: Insights on wholesale distribution expansion - Management confirmed opportunities for expanding wholesale distribution while focusing on elevating customer experience and increasing apparel sales [49][50] Question: Brand awareness and gross margin expectations - Management noted brand awareness has reached 30%, with significant potential for growth, and expects strong gross margins throughout the year [70][73] Question: EBITDA margin and distribution line items guidance - Management emphasized ongoing operational efficiencies and reinvestment into the brand to drive profitability while maintaining growth [76][78] Question: Addressable market size and market share - Management discussed the societal shift towards investing in oneself, indicating a large growth opportunity beyond traditional sportswear markets [81][84]

Financial Data and Key Metrics Changes - On Holding AG achieved a significant milestone by crossing the CHF 3 billion revenue mark for the first time in 2025, with sales growing 36% at constant currency and a reported growth rate of 30% year-over-year [6][17] - The company reported a record gross profit margin of 62.8% and an adjusted EBITDA margin of 18.8%, exceeding their 2026 aspirations [17][30] - Cash flow generation improved, resulting in a cash position of over CHF 1 billion, marking the strongest cash position in the company's history [17][33] Business Line Data and Key Metrics Changes - The apparel business saw a remarkable 76% net sales growth at constant currency, indicating a successful expansion into multi-category offerings [13][21] - The performance running segment maintained strong momentum, with net sales from shoes reaching CHF 687.3 million, growing 20.8% reported and 28.8% at constant currency [29] - Accessories experienced a significant increase in sales, growing by 135.1% year-over-year, now representing 7% of total net sales [21] Market Data and Key Metrics Changes - The Americas delivered net sales of CHF 434.3 million, growing 12.8% reported and 21.3% at constant currency, with close to 50% of net sales driven by direct-to-consumer channels [25] - Europe, Middle East, and Africa (EMEA) saw net sales of CHF 183 million, increasing 24.2% year-over-year and 27.5% at constant currency, with strong performance across all channels [26] - Asia-Pacific delivered exceptional growth, with net sales reaching CHF 126.5 million, increasing 70.8% reported and 85.1% at constant currency [27] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on performance innovation and cultural relevance to capture the movement class [8][18] - A significant investment in R&D has led to a 1,000% increase in the R&D team, focusing on performance and feel for consumers [8] - The introduction of innovative manufacturing technologies like LightSpray is expected to democratize high-performance products, expanding market reach [9][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum, expecting strong growth rates across all regions in 2026, particularly in the direct-to-consumer channel [45][68] - The company anticipates a reported net sales target of at least CHF 3.44 billion for 2026, reflecting a strong demand and brand desirability [39] - Management highlighted the importance of maintaining premium positioning and operational excellence as key to future growth [18][19] Other Important Information - The company opened 80 new stores in 2025, expanding its retail footprint to nearly 20 countries [12][20] - The brand's awareness has increased from 20% to 30%, indicating significant growth potential in untapped markets [70] - The company plans to continue leveraging cultural partnerships and innovative product launches to drive brand relevance and consumer engagement [11][76] Q&A Session Summary Question: Expectations for growth across regions in 2026 - Management indicated strong product pipeline and innovation, expecting robust growth across all regions, particularly in North America [43][44] Question: Insights on wholesale distribution expansion - Management confirmed opportunities for expanding product offerings in existing key accounts while focusing on enhancing customer experience [50][51] Question: Continuation of strong momentum into 2026 - Management noted that the strong holiday momentum is expected to carry into 2026, with a focus on younger consumers and direct-to-consumer growth [56][59] Question: Brand awareness and gross margin expectations - Management highlighted the potential for increased brand awareness and confirmed strong gross margins throughout the year, with potential upside from tariff changes [74][76] Question: Distribution and G&A line items in guidance for 2026 - Management emphasized ongoing operational efficiencies and reinvestment strategies to drive profitability while expanding the brand [79][81] Question: Addressable market size and market share - Management discussed the societal shift towards investing in self-identity, indicating a significant growth opportunity beyond traditional sportswear markets [85][86]