Q2 2024 On Holding AG Earnings Call Transcript
Key Points
- On Holding AG (ONON) reported a 28% increase in net sales, reaching CHF567.7 million for Q2 2024.
- The company has successfully increased its profitability levels, both in gross profit and adjusted EBITDA margin.
- Strong brand momentum is evident, with significant marketing investments leading to increased brand awareness and consumer engagement.
- The launch of innovative products like LightSpray technology and new footwear models has been well-received, driving growth.
- The company has seen exceptional growth in the APAC region, with net sales increasing by 73.7% year-over-year.
- The ongoing transition of the Atlanta warehouse has led to product availability constraints and delayed deliveries, impacting both D2C and wholesale channels.
- Despite strong demand, the company faced inventory shortages, particularly affecting the D2C channel.
- The company is operating out of a temporary, non-optimized warehouse space, leading to capacity constraints.
- There are concerns about the impact of currency fluctuations, particularly in the APAC region, which could affect future sales.
- The company has had to prioritize certain franchises and retail partners due to inventory and capacity limitations, potentially missing out on some sales opportunities.
Thank you for standing by. My name is Krista, and I will be your conference operator today. I would like to welcome everyone to the On Holding AG second-quarter 2024 results conference call. (Operator Instructions)
Thank you. I will now turn the conference over to Jerrit, who is Head of Investor Relations. Jerrit, you may begin.
Good afternoon. Good morning to our investor community. Thank you for joining Onâs 2024 second-quarter earnings conference call and webcast. With me today on the call are Onâs Executive Co-Chairman and Co-Founder; David Allemann; CFO and Co-CEO, Martin Hoffmann; and Co-CEO, Marc Maurer.
Before we begin, I will briefly remind everyone that today's call will contain forward-looking statements within the meaning of the Federal Securities Laws. These forward-looking statements reflect our current expectations and beliefs only and are subject to certain risks and uncertainties that could cause actual results to differ materially. Please refer to our 20-F, Filed with the SEC on March
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