The following is a summary of the On Holding AG (ONON) Q2 2024 Earnings Call Transcript:
Financial Performance:
On Holding AG reported a strong financial performance in Q2 2024, with net sales growing by 28% to CHF567.7 million.
The company increased its profitability levels, both from a gross profit and an adjusted EBITDA margin perspective.
Gross profit margin stood at a premium 59.9%, benefiting from lower freight rates.
Net income significantly improved to CHF30.8 million, up from CHF3.3 million in Q2 2023.
Capital expenditures were CHF16.9 million, reflecting investments in growth and innovation.
Business Progress:
The company launched several new products including Cloudboom Strike LightSpray and Cloudsurfer Next, enhancing its running shoe line.
Opened new flagship stores, including the largest one on the Champs-Elysees, Paris, enhancing brand visibility and outreach.
Expanded retail network to 37 stores globally, supporting growth in owned retail as a key driver.
Successful global launch of the brand's first commercial app, receiving high downloads and transactions.
Opportunities:
The innovative LightSpray technology heralds a manufacturing revolution, promising near-shoring capabilities, reduced CO2 emissions, and potential market expansion.
Continued global expansion with effective partnerships and high brand momentum, expected to drive future growth and market share gains.
Risks:
Operational disruptions relating to the transition of the Atlanta warehouse affected product availability and delivery, impacting especially the D2C channel.
More details: On Holding IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.