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 - The company reported net sales of CHF 749.2 million, representing a 32% year-over-year increase on a reported basis and a 38.2% increase on a constant currency basis [31][29] - Adjusted EBITDA reached CHF 136.1 million, translating to an adjusted EBITDA margin of 18.2%, up 220 basis points year-over-year [41][30] - Gross profit margin increased by 160 basis points year-over-year to 61.5%, driven by a higher D2C share and lower freight expenses [39][40] Business Line Data and Key Metrics Changes - The Direct-to-Consumer (D2C) channel saw net sales of CHF 308.3 million, up 54.3% year-over-year at constant currency [31] - The apparel business delivered net sales growth of 75.5% at constant exchange rates, reaching CHF 36.7 million [38] - Net sales from shoes grew 36% at constant exchange rates, with strong demand across both Performance and Lifestyle portfolios [37] Market Data and Key Metrics Changes - EMEA region net sales grew by 46.1% year-over-year on a constant currency basis, reaching CHF 197.8 million [34] - The Americas saw net sales growth of 23.6% on a constant currency basis, totaling CHF 432.3 million [35] - The APAC region experienced triple-digit growth, with net sales up 110.9% year-over-year, translating to CHF 119.2 million [36] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on innovation, quality, and customer experience [50][51] - A strategic emphasis on building a balanced portfolio with nine distinct footwear franchises, each contributing over 5% to the top line [9][80] - The company is expanding its apparel business and enhancing its relevance as a full sportswear brand, with plans for new product launches and collaborations [10][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and the ability to navigate macroeconomic challenges, including tariffs [64][62] - The company anticipates continued strong performance in Q3 and has raised its full-year guidance for net sales growth to at least 31% year-over-year [48][47] - Management highlighted the importance of maintaining a premium brand position and investing in long-term growth initiatives [50][51] Other Important Information - The company opened its first retail store in Singapore, which achieved high sales during its opening weekend [27] - The launch of the LightSpray factory in Zurich represents a significant innovation in manufacturing processes [18] - The company has a strong cash position of CHF 846.6 million, despite a decrease from the previous quarter [44] Q&A Session Summary Question: What gives you the confidence to raise your constant currency sales growth guidance for the year? - Management cited strong brand momentum globally, with significant growth across all regions and product categories, and a strong order book for Q3 [56][58] Question: Can you talk about the second half constant currency revenue growth and trends in wholesale and DTC? - Management emphasized the importance of durable, high-quality growth and indicated that they are well-positioned for continued momentum in both channels [68][70] Question: What are the levers for additional margin expansion given current performance? - Management highlighted opportunities for increased gross profit margin through a higher D2C mix, economies of scale, and continued investment in brand-building initiatives [71][72] Question: Can you expand on the gross margin outlook for the year? - Management expressed confidence in maintaining gross profit margins above 60%, supported by price increases and operational efficiencies [92][93] Question: How is the apparel strategy evolving? - Management noted strong consumer engagement in apparel, driven by direct-to-consumer channels and collaborations with influencers, and plans to continue expanding this category [96][97]