Swiss sportswear brand On has kicked off the year with record sales for Q1 as strong demand in the US helped offset growing tariff pressures.
The company posted first-quarter net sales of US$1.066 billion, up 14.5 per cent year-on-year, marking the first time it has exceeded $1.024 billion in quarterly revenue.
Sales in the Americas rose 3.1 per cent to $577.6 million, which the brand says is supported by continued demand for its premium footwear and apparel.
“Q1 was an outstanding start to the year and another strong proof point of our premium strategy in action,” said Caspar Coppetti, founder and CEO of On.
“On is becoming more global, more multi-dimensional and more deeply rooted in different communities around the world.”
The strong quarter came despite higher US tariffs, which the company said created “meaningful headwinds”.
However, On said disciplined pricing, operational efficiencies, and full-price selling helped lift gross profit margin to 64.2 per cent, up from 59.9 per cent a year earlier.
Net income rose 82.2 per cent to $132 million, while adjusted EBITDA increased 45.4 per cent to $223.1 million.
Direct-to-consumer sales climbed 16.4 per cent to $412.9 million, while wholesale revenue increased 13.3 per cent to $652.8 million.
Apparel continued to gain momentum, with sales jumping 45.1 per cent year-on-year to $70.8 million, as the company expanded beyond its core running footwear business.
Outside the Americas, Asia-Pacific delivered the company’s fastest growth, with revenue up 44.4 per cent, driven by China and South Korea. The region now accounts for more than 20 per cent of global sales.
The company has upcoming store openings planned in cities including Stockholm, São Paulo, and Sydney.
Looking ahead, On says it maintained its full-year constant currency sales growth forecast of at least 23 per cent and raised its profitability outlook.
The company now expects a full-year gross profit margin of at least 64.5 per cent and an adjusted EBITDA margin of between 19.5 per cent and 20 per cent.
