The following is a summary of the On Holding AG (ONON) Q1 2024 Earnings Call Transcript:
Financial Performance:
On Holding AG reported a significant increase in net sales, reaching CHF508 million in Q1 2024 with a gross margin close to 60%.
This is a first-ever achievement for the company in a single quarter and represents a 30% growth on a constant currency basis.
Strong sales enabled the company to push gross profit margins higher, leading to a top-line contribution of CHF190.5 million.
Company reported a net income of CHF91.4 million for Q1, with operating cash flow at CHF81 million and a cash position of CHF584.6 million by the end of the quarter.
Business Progress:
On Holding AG continued to expand its global reach with successful store openings in Berlin and Portland, Oregon, thereby increasing its total number of stores to over 50.
The company has made significant strides in diversifying its product offerings and its market reach. Key initiatives include resizing the entire collection, expansion into tennis apparel, and securing a new creative partner, FKA Twigs.
They have expanded their product range to cater to more sizes and bodies, leading to lower return rates. A new distribution center is operational in Atlanta, and the company is on track with its omnichannel distribution strategy, which includes crucial partnerships with Zalando and Sports Direct.
More details: On Holding IR
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