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, the strongest in the company's history [33] Business Line Data and Key Metrics Changes - The apparel business saw a remarkable 76% net sales growth at constant currency, indicating a successful multi-category expansion strategy [12][20] - Accessories experienced a growth of 135.1%, contributing to a structural improvement in the premium mix and overall business profitability [20] - 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% driven by D2C channels [25] - EMEA region reported net sales of CHF 183 million, increasing 24.2% year-over-year and 27.5% at constant currency, with strong momentum in the German-speaking region [26] - Asia-Pacific net sales reached 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 redefine the sportswear market by focusing on premium positioning and innovation, targeting the "movement class" that values vitality and health [5][14] - A significant investment in R&D has led to a 1,000% increase in the R&D team, focusing on performance innovation and engineering breakthroughs [6][12] - The company is expanding its retail footprint, with 80 new stores opened in the past year, and plans to scale to nearly 20 countries [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and the strength of the product pipeline for 2026, expecting net sales to grow at least 23% at constant currency [36][39] - The company anticipates robust growth across all regions, driven by a strong demand for innovative products and a focus on direct-to-consumer channels [38][65] - Management highlighted the importance of maintaining operational excellence while investing in brand experience and product innovation [17][31] Other Important Information - The company is leveraging AI technology to enhance customer service and improve operational efficiency [11][12] - The introduction of the LightSpray technology is expected to revolutionize shoe manufacturing and expand production capacity significantly [9][63] - The brand's awareness has increased to 30%, with a significant opportunity for growth as 70% of potential customers remain untapped [18][70] 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 [43][44] Question: Insights on wholesale distribution expansion - Management confirmed a focus on expanding brand presence in key accounts while enhancing customer experience and driving apparel sales [49][50] Question: Brand awareness and gross margin expectations - Management noted a significant increase in brand awareness and expected strong gross margins throughout the year, with potential upside from tariff changes [70][73] Question: Distribution and G&A line items for 2026 - Management highlighted ongoing improvements in operational efficiencies and a commitment to reinvest in brand growth while maintaining profitability [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]