On AG(ONON)2025-05-13 13:02Financial Data and Key Metrics Changes - Net sales reached CHF 726.6 million in Q1 2025, reflecting a year-over-year growth of 43% on a reported basis and 40% on a constant currency basis, marking the highest quarterly net sales in the company's history [27][39] - Gross profit margin increased to 59.9%, up from 59.7% in Q1 2024, driven by an increased direct-to-consumer (DTC) share [39] - Adjusted EBITDA margin for Q1 was 16.5%, up from 15.2% in the same period last year [39] - Net income reached CHF 56.7 million despite a sizable unrealized foreign exchange loss [40] Business Line Data and Key Metrics Changes - DTC channel net sales grew by 45.3% year-over-year, reaching CHF 276.9 million, with DTC share increasing to 38.1% from 37.5% [27][28] - Wholesale sales grew by 41.5% year-over-year, reaching CHF 449.7 million [29] - Apparel net sales reached CHF 38.1 million, increasing by 93.1% year-over-year, marking the highest quarterly net sales in history for this category [37] Market Data and Key Metrics Changes - Europe, Middle East, and Africa (EMEA) region grew by 33.6% on a reported basis, reaching CHF 168.6 million [30] - The Americas region saw net sales grow by 32.7% year-over-year to CHF 437.4 million [31] - Asia Pacific region experienced significant growth of 130.1% on a reported basis, reaching CHF 120.6 million [32] Company Strategy and Development Direction - The company is committed to maintaining its premium brand positioning and product promise, which is seen as a key differentiator in the market [10] - Focus on continuous product innovation and strategic partnerships to enhance brand awareness and cultural relevance [11][13] - Plans to expand retail presence while maintaining a controlled pace of store openings, aiming for a 10% revenue share from stores [87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's strength and consumer demand, despite macroeconomic uncertainties and potential tariff impacts [42][43] - The company has increased its constant currency growth rate outlook for 2025 to at least 28% [44] - Management emphasized the importance of operational efficiencies and strategic investments to drive long-term sustainable growth [47] Other Important Information - The company announced a leadership transition, with Martin Hoffmann set to become the sole CEO from July 1 [18][21] - The company has been recognized as the most innovative company in the design category by Fast Company for its LightSpray technology [15] Q&A Session Summary Question: Brand awareness and growth drivers in the Americas - Management highlighted that brand campaigns have significantly increased brand awareness, with strong growth continuing into April [51][52] Question: Improved constant currency growth outlook - Management confirmed that the outlook reflects strong growth across all regions and channels, with e-commerce and retail driving significant growth [62][66] Question: Mitigation efforts for tariff impacts - Management stated that the outlook assumes current tariffs and emphasized the brand's ability to increase prices to mitigate impacts [71][73] Question: Success of the apparel offering - Management noted that harmonized sizing and targeted campaigns have driven success in apparel, with strong performance in running, training, and tennis categories [78][80] Question: Store rollout performance - Management reported that 18 out of 20 stores outside China exceeded expectations, contributing positively to the brand's premium positioning [84][86] Question: Wholesale channel growth outlook - Management confirmed that the outlook for wholesale growth remains unchanged, with a focus on controlled expansion and maintaining inventory clarity [106][108]