On Holding (ONON) Q4 2024 Earnings Call Transcript | The Motley Fool

Image source: The Motley Fool. DATE Tuesday, March 4, 2025 at 8 a.m. ET CALL PARTICIPANTS Co-Founder and Executive Board Member - David Allemann Co-CEO and CFO - Martin Hoffmann Co-CEO - Marc Maurer Need a quote from a Motley Fool analyst? Email [email protected] TAKEAWAYS Net Sales -- CHF 2.32 billion for the year, up 33.2% on a constant currency basis. Q4 Net Sales -- CHF 606.6 million, representing 40.6% growth on a constant currency basis. Direct-to-Consumer (D2C) Share -- 48.8% in Q4 with D2C net sales of CHF 296.2 million, up 48.2% on a constant currency basis. Wholesale Net Sales -- CHF 310.4 million in Q4, growing 34.2% on a constant currency basis. Gross Profit Margin -- 62.1% in Q4, a 170 basis point increase year over year; full year gross margin reached 60.6%. Adjusted EBITDA Margin -- 16.4% in Q4; 16.7% for the full year, up from 15.5% the prior year. Net Income -- CHF 89.5 million in Q4, with a CHF 38 million foreign exchange gain. Apparel Net Sales -- Over CHF 100 million in 2024, with Q4 apparel sales rising 77.5% to CHF 32.6 million. Capital Expenditure -- 2.8% of net sales for 2024, up from 2.6% in 2023, driven by retail expansion. Net Working Capital -- Improved to 21.5% of net sales in 2024 from 27.7% the previous year. Operating Cash Flow -- CHF 510.6 million in 2024, more than doubling year-over-year. Total Cash Position -- CHF 924.3 million at year end, up from CHF 494.6 million at the end of 2023. APAC Performance -- Q4 net sales of CHF 74.1 million, up 124.6% on a constant currency basis; driven by Japan, China, and store openings in Hong Kong. Americas Growth -- Q4 net sales of CHF 385.1 million, up 33.9% on a constant currency basis; Brazil more than doubled net sales, notably in apparel. EMEA Growth -- Q4 net sales of CHF 147.4 million, up 33.1% on a constant currency basis; benefits from new stores in Paris and Milan. Product Franchise Growth -- Cloudmonster, Cloudsurfer, and Cloudrunner grew between 60% and 140% during the year. Younger Consumer Uptake -- Share of products sold to customers age 35 and younger increased by 6-8 percentage points for top franchises. Retail Expansion -- Opened 19 new stores in 2024, extending presence into Europe, Americas, and Asia-Pacific. Wholesale Door Growth -- 10,700 wholesale doors at year end with a plan to expand to approximately 11,300 in 2025. 2025 Net Sales Outlook -- At least CHF 2.94 billion, representing at least 27% constant currency growth. 2025 Gross Margin Guidance -- Around 60.5%, accounting for foreign exchange headwinds and D2C mix improvements. 2025 Adjusted EBITDA Margin Guidance -- Expected to be in the range of 17%-17.5%. Apparel Category Target -- Medium-term goal for apparel sales to reach 10% of total revenues. China Retail Expansion -- 58 stores at year end (30 own retail, 28 franchise) with plans to grow to 80 in 2025, including new flagships in Chengdu and...

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