On, the footwear company, stated its Q1 net sales were up 78.3 per cent year-over-year to 420.2 million Swiss francs (about US $ 467 million), setting a new record for the company’s fiscal year. Direct-to-consumer net sales climbed by 64.3 per cent, and wholesale revenue increased by 86 per cent.
On’s gross margin rose from 51.8 per cent to 58.3 per cent in the first quarter compared to the same period last year. In the meantime, its net income increased by 209.2 per cent, from 14.3 to 44.4 million Swiss francs.
On increased its forecast for net revenues for the entire fiscal year to at least 1.74 billion Swiss francs. On anticipates that while retaining a larger net sales base, inventory will be comparable to that of December 2022 at the conclusion of the year.
“Our record net sales in Q1 are a further validation of the strong brand momentum across all regions, channels and product groups,” Martin Hoffmann, co-CEO and CFO of On, said.
In the future months, On will establish new retail locations in Williamsburg, New York City, and Miami, each of which will have more than double the amount of retail space as its existing New York City presence.
It’s possible that the brand’s success is being fueled by the expansion of its product line, which included entering the kids’ footwear market in March.
