Retail, D-to-c and more drive outperformance

As it nears its second anniversary as a public company, momentum doesn't seem to not slow down to On Hold.

In the second quarter, the Zurich-based company recorded its sixth consecutive quarter of revenue growth. business with net sales for the period ending June 30, 2023 increased by 52.3% to 444.3 million Swiss francs.

Net profit in the three months fell 93.3% to 3.3 million Swiss francs, compared to 49.1 million in the previous period. period of the year, but adjusted earnings before interest, taxes and depreciation increased by 99.6% to 62.7 million francs against 31.4 million francs the previous year. The company attributed the discrepancy in the numbers to currency issues during the period.

Britt Olsen, Managing Director of Americas, specifically highlighted the company's growth in various regions like as well as its strength in the direct-to-consumer channel as highlights of the quarter.

In the second quarter, d-to-c channel sales jumped 54.7% to reached 163.5 million Swiss francs, while those of the wholesale channel increased by 51% to reach 280.8 million francs.

And by region, net sales in the brand's largest region — Europe, Middle East and Africa — increased 28.9% to 113.6 million Swiss francs, while the Americas increased 59.8% to 296.6 million Swiss francs and Asia-Pacific was the best performer, with sales jumped 90.2% to 34.1 million francs.

We currently own and operate 25 stores worldwide and 13 franchise units in China. Of those, four are in the Americas region, Olsen said. But the brand will continue to roll out retail in the United States with units slated to open in Portland, Oregon; Austin, TX; Chicago and Miami later this year or early next year, she said.

By product category, sales of footwear, apparel and accessories increased 52.6% to 428.2 million francs, or 45.9% to 13.4 million francs and 45.4% to 2.7 million francs respectively in the second quarter.

Although clothing still represents only a small percentage of the overall business, it is seen as a major growth opportunity for the future. Olsen said the company "has seen very solid growth, especially on the retail side." She cited the recently opened store in Williamsburg in Brooklyn, New York, as an example, revealing that the percentage of sales from clothing to shoes in this store is higher than anywhere else.

Clothes are still primarily performance oriented, but Olsen said there are also collections which are intended more for movement and training as well as tennis, on and off the court.

Roger Federer is an investor in the brand and earlier this year the company revealed that she had signed Poland's Iga Świątek, the world's number one female tennis player, as an ambassador alongside Ben Shelton, a rising American star on the court.

Going forward, Olsen said tennis as well as running would be the main vectors growth for On, with the outdoor category of trail and mountain shoes. Although the company has launched six new shoe models in the past two years, Olsen said, "We're just getting started on the running side of the Americas."

Over the six months, net sales increased 63.9% to 864.5 million Swiss...