- On Holding AG (NYSE:ONON) reported first-quarter FY22 sales growth of 67.9% year-on-year, to CHF 235.7 million, compared to CHF 140.4 million the previous year.
- Sales through the direct-to-consumer (DTC) channel increased 68.0% to CHF 83.4 million, and the wholesale channel grew 67.8% to CHF 152.3 million.
- The gross profit margin for the quarter contracted 580 basis points to 51.8%, and the gross profit rose 51% to CHF 122.1 million.
- The operating margin was 1.4%, and operating income for the quarter rose to CHF 3.4 million from a loss of CHF (10.9) million last year.
- The company held CHF 626.3 million in cash and equivalents as of March 31, 2022.
- Adjusted EBITDA decreased 21.1% to CHF 15.7 million, and the adjusted EBITDA margin contracted 750 basis points to 6.7%.
- EPS of CHF 0.04 was posted in the quarter versus CHF (0.04) last year.
- Outlook: On Holding sees FY22 sales to exceed CHF 1.04 billion, a 44% Y/Y growth (prior view CHF 990 million).
- The company expects an adjusted EBITDA of CHF 137 million with an adjusted EBITDA margin of 13.2% versus previously expected CHF 130 million and 13.1%, respectively.
- Price Action: ONON shares traded higher by 7.11% at $21.85 in premarket on the last check Tuesday.
