On AG(ONON)2025-03-04 17:33Financial Data and Key Metrics Changes - In 2024, the company achieved a net sales of CHF 2.32 billion, reflecting a 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 strong profitability [52][71] - 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, saw growth between 60% and 140% in 2024 [44] - Apparel net sales exceeded CHF 100 million, with a constant currency growth of 51% in 2024 [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 net sales reached CHF 147.4 million in Q4, growing by 31% year-over-year [60] - APAC saw a reported growth rate of 117.5% in Q4, driven by strong performance in Japan and China [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 key to enhancing brand visibility and consumer engagement [19][20] - The company plans to expand its retail presence, having launched 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 and a projected constant currency growth rate of at least 27% for the year [81][82] - The company is focused on operational excellence and sustainability, with plans to enhance production capabilities and automate warehouses [79][80] - Management acknowledged potential macroeconomic challenges but emphasized strong preorders and brand momentum [97][98] Other Important Information - The company reported a significant increase in cash flow, with total cash balance reaching CHF 924.3 million at the end of 2024 [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 - Management highlighted that Cloud has become an iconic staple, resonating with younger consumers and is expected to be a significant contributor to growth in 2025 [88][90] Question: Guidance on sales growth by region - Management indicated strong momentum in Q1, expecting growth rates in the low to mid-30s, with a strong performance in both D2C and wholesale channels [95][96] Question: Strategies for younger consumer engagement - Management discussed the importance of partnerships and retail expansion in driving brand visibility among younger consumers [110][111] Question: Apparel growth expectations - Management expressed confidence in apparel reaching 10% of total revenue in the midterm, with strong correlations between retail presence and apparel success [120][121] Question: Long-term objectives tracking - Management noted that retail expansion and market access are crucial for achieving long-term targets, with a focus on increasing apparel share and D2C growth [132][135]