Financial Data and Key Metrics Changes - The company has raised its sales targets multiple times and is tracking ahead of its 2026 margin targets, indicating strong performance relative to competitors who have cut guidance [7][9] - The gross profit margin reached 65% in Q3, showcasing a strong margin profile despite tariff impacts [31] Business Line Data and Key Metrics Changes - The running category remains crucial, with successful franchises like Cloudrunner, Cloudsurfer, and Cloudmonster driving growth [17][18] - The apparel segment, particularly in tennis, is the fastest-growing part of the business, indicating successful expansion into new categories [20] Market Data and Key Metrics Changes - China has become the second-largest market for the company, with Asia Pacific outgrowing expectations [9] - Brand awareness is between 25%-30%, suggesting significant room for growth as 75% of potential customers are not yet familiar with the brand [25] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on innovation, quality, and sustainability [4][5] - There is a clear strategy to expand the addressable market by tapping into new demographics and sports categories [20][21] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the brand's growth trajectory, with plans already in place for product development through 2028 [34] - The importance of team culture and talent acquisition was highlighted as a key factor in maintaining brand momentum [35] Other Important Information - The company emphasizes the significance of maintaining a premium brand image, avoiding discounting, and focusing on full-price sales [11][12] - Automation in manufacturing is seen as a future necessity, with the introduction of innovative products like Lightspray [32] Q&A Session Summary Question: How does the company manage the balance between growth and margins? - The management stated that high margins should not come at the expense of innovation and investment in the business, emphasizing a balance between growth and maintaining a healthy margin environment [27][28] Question: What are the expectations regarding U.S. tariffs and their impact? - The company has implemented pricing and supply chain efficiencies as mitigation strategies, which are expected to remain even if tariffs are rolled back [31] Question: What is the company's outlook on the running category amidst competition? - The management reaffirmed the commitment to remain a leader in running, with significant innovations planned for existing product lines [17][18]

Financial Data and Key Metrics Changes - The company has raised its sales targets multiple times and is tracking ahead of its 2026 margin targets, indicating strong performance relative to competitors who have cut guidance [7][9] - The gross profit margin reached 65% in Q3, showcasing a strong margin profile despite tariff impacts [31] Business Line Data and Key Metrics Changes - The running category remains crucial, with significant innovations planned for products like the Cloudmonster and Cloudsurfer, which are expected to enhance market relevance [17][18] - The apparel segment, particularly in tennis, is the fastest-growing part of the business, driven by collaborations that appeal to younger demographics [20] Market Data and Key Metrics Changes - China has become the second-largest market for the company, with the Asia Pacific region outpacing expectations [9] - Brand awareness is between 25%-30%, indicating a significant opportunity for growth as 75% of potential customers are not yet familiar with the brand [25] Company Strategy and Development Direction - The company aims to maintain its premium positioning while expanding its addressable market through innovation and brand awareness [5][10] - There is a focus on balancing growth and margins, with a commitment to reinvest in product development and marketing to sustain brand momentum [28][29] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the brand's growth trajectory, with guidance to achieve 30% growth over the next three years while maintaining a 23% growth rate next year [34] - The importance of team culture and talent acquisition was highlighted as a key factor in sustaining brand strength and innovation [35] Other Important Information - The company is focused on avoiding discounting practices to maintain its premium brand image, especially during the holiday season [11][12] - Automation in manufacturing is seen as a critical future direction, with the introduction of products like LightSpray aimed at enhancing production efficiency [32] Q&A Session Summary Question: How does the company view the balance of wholesale growth? - The company sees wholesale growth coming from new partners, new doors, and same-store sales, emphasizing the need to start with customer awareness [25] Question: What is the company's approach to managing growth and margins? - The management stated that high margins should not come at the expense of innovation and investment, aiming for a balance that supports growth while maintaining healthy margins [27][28] Question: How does the company plan to address potential tariff impacts? - The company has implemented pricing and supply chain efficiencies as mitigation strategies, which are expected to remain even if tariffs are rolled back [31]

Financial Data and Key Metrics Changes - The company is tracking ahead of its 2026 margin targets and is on track to exceed sales targets, indicating strong performance relative to competitors who have cut guidance [7][9] - The gross profit margin reached 65% in Q3, showcasing a strong margin profile despite tariff impacts [31] Business Line Data and Key Metrics Changes - The running category remains crucial, with significant innovations planned for the Cloudmonster, Cloudsurfer, and Cloudrunner lines in 2026 [16][18] - The apparel business, particularly in tennis, is the fastest-growing segment, driven by collaborations that appeal to younger demographics [20] Market Data and Key Metrics Changes - China has become the second-largest market for the company, with Asia Pacific outpacing expectations [9] - Brand awareness is between 25%-30%, indicating significant growth potential as 75% of potential customers are still unaware of the brand [25] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on innovation, quality, and sustainability to expand its addressable market [4][5] - The strategy includes maintaining a premium positioning while expanding into new sports categories, balancing performance and lifestyle [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's growth trajectory, with plans already in place for product development through 2028 [34] - The importance of team culture and talent acquisition was emphasized as a key driver of brand success [35] Other Important Information - The company is focused on full-price sales and avoiding discounting, which aligns with its premium brand strategy [11][12] - There is a strong emphasis on automation in manufacturing to enhance efficiency and reduce reliance on manual labor [32] Q&A Session Summary Question: What has driven the outsized growth of the brand? - Management noted that the brand's DNA and premium positioning have been key to its success, with all initiatives aligning with growth targets [8] Question: How important is the running category to On's business? - The running category is foundational, with aspirations to lead in this space through innovation and product updates [16] Question: What are the characteristics for entering new categories? - The focus is on expanding the addressable market and relevance to a broader customer base, particularly in performance and lifestyle sports [20] Question: How does the company balance growth and margins? - Management aims to steadily increase margins while investing in growth initiatives, emphasizing the need for innovation and product development [27][29] Question: What are the implications of U.S. tariffs on the business? - The company has implemented structural changes to maintain margins and continue investing in growth, regardless of tariff fluctuations [30][31]

Financial Data and Key Metrics Changes - The company achieved record net sales of CHF 794.4 million, growing 24.9% year over year on a reported basis and 34.5% at constant currency [17][30] - Gross profit margin reached 65.7%, an increase of 510 basis points year over year, while adjusted EBITDA margin was 22.6%, up 370 basis points year over year [25][26] - Adjusted EBITDA grew nearly 50% year over year, amounting to CHF 179.9 million [17][25] Business Line Data and Key Metrics Changes - Performance footwear net sales reached CHF 731.3 million, increasing by 21.1% year over year on a reported basis and 30.4% at constant currency [22] - Apparel category net sales reached CHF 50.1 million, an increase of 86.9% year over year on a reported basis and 100.2% at constant currency, with over 1 million apparel units sold in a single quarter for the first time [23][30] - Direct-to-consumer (D2C) channel net sales reached CHF 314.7 million, an increase of 27.6% year over year on a reported basis and 37.5% at constant currency [17] Market Data and Key Metrics Changes - Asia Pacific region delivered net sales of CHF 144.9 million, up 94.2% year over year on a reported basis and 109.2% at constant currency, now approaching 20% of total sales [21] - Americas net sales reached CHF 436.2 million, growing 10.3% year over year on a reported basis and 21% at constant currency [19] - Europe, Middle East, and Africa (EMEA) net sales reached CHF 213.3 million, up 28.6% year over year on a reported basis and 33% at constant currency [20] Company Strategy and Development Direction - The company aims to be the most premium global sportswear brand, focusing on brand awareness and premium positioning [12][52] - The strategy includes expanding the apparel business as a standalone growth pillar, with a focus on D2C channels and retail presence [15][42] - The company plans to double net sales by 2026, implying a 26% net sales constant currency CAGR over three years [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and the ability to maintain premium pricing despite external challenges [30][66] - The company anticipates strong growth across all regions, with a focus on maintaining a full-price sales strategy during the holiday season [77][78] - The outlook for 2026 includes a constant currency growth expectation of at least 23%, supported by a robust product pipeline and strategic investments [31][56] Other Important Information - The company opened new flagship stores in key markets, including Tokyo and Zurich, which contributed to record sales [13][18] - The company is leveraging collaborations with cultural icons to enhance brand appeal among younger consumers [10][87] - The cash balance at the end of Q3 stood at CHF 961.8 million, reflecting strong operational cash flow management [28] Q&A Session Summary Question: Can you discuss the traction in apparel and its regional performance? - Management highlighted strong traction in apparel, accounting for about 8% of total business, with significant growth in running, training, and tennis categories [38][39] Question: How do you balance top-line growth with margin protection? - Management emphasized the importance of discipline in inventory management and maintaining a premium business model to protect margins while driving growth [45][46] Question: Can you elaborate on the 2026 guidance and growth expectations? - Management confirmed that the 2026 guidance is based on constant currency and reflects strong growth across all regions, with a focus on brand awareness and premium positioning [51][56] Question: What is the outlook for gross margin in Q4? - Management indicated that there is potential for margin upside in Q4, supported by operational improvements and favorable market conditions [60][61] Question: How is the company connecting with younger consumers? - Management noted successful collaborations with cultural figures and the launch of a kids line, which has resonated well with younger demographics [87]

Financial Data and Key Metrics Changes - In 2024, the company achieved a net sales of CHF 2.32 billion, reflecting a strong constant currency growth rate of over 33% [11][52] - The gross profit margin reached 60.6%, while the adjusted EBITDA margin was 16.7%, indicating a solid path towards midterm targets [12][52] - For Q4, net sales grew by 35.7% on a reported basis, reaching CHF 606.6 million, with a D2C share of 48.8% [55][56] Business Line Data and Key Metrics Changes - The top three running franchises, Cloudmonster, Cloudsurfer, and Cloudrunner, experienced growth between 60% and 140% in 2024 [44] - Apparel net sales exceeded CHF 100 million, with a constant currency growth rate of 51% [46][47] - In Q4, apparel sales grew by 77.5%, reaching CHF 32.6 million, contributing to over 5% of net sales [67] Market Data and Key Metrics Changes - Net sales in the Americas grew by 28.1% in Q4, with Brazil more than doubling its net sales compared to the prior year [58][59] - EMEA saw net sales of CHF 147.4 million in Q4, growing by 31% year-over-year, supported by retail stores in Paris and Milan [60] - APAC achieved a reported growth rate of 117.5% in Q4, with Japan and China being key drivers [61] Company Strategy and Development Direction - The company aims to become the most premium global sportswear brand, targeting a 26% net sales CAGR and a gross profit margin above 60% by 2026 [10] - Strategic partnerships with celebrities and athletes are central to brand building, enhancing visibility and consumer engagement [19][20] - The company plans to expand its retail presence, launching 19 new stores in iconic locations in 2024 [31][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding growth expectations, with a strong start to 2025 anticipated [39][81] - The company is cautious about macroeconomic conditions but remains optimistic based on strong preorders and brand momentum [97][98] - The focus will be on operational excellence and investments in infrastructure to support long-term growth [80][130] Other Important Information - The company achieved an operating cash flow of CHF 510.6 million, more than doubling year-over-year, with a total cash balance of CHF 924.3 million at year-end [74] - The company is committed to sustainability and plans to publish an impact progress report soon [51] Q&A Session Summary Question: Insights on Cloud 6's contribution to growth in 2025 - Management highlighted that Cloud has become an iconic staple resonating with younger consumers, with a classic campaign set to launch soon [89] Question: Guidance on sales growth by region and consumer environment in the U.S. - Management expects strong growth in Q1, with a focus on D2C and wholesale channels, while remaining prudent due to macroeconomic uncertainties [92][96] Question: Strategies for increasing apparel penetration and distribution - The company aims to elevate apparel's share of revenue to 10%, with a strong correlation between retail presence and apparel success [120] Question: Outlook on operational efficiencies and long-term objectives - Management plans to leverage G&A efficiencies and continue high marketing investments to drive growth and brand awareness [129][131]