Federer-backed On Holding (ONON) rises after announcing a 3-year outlook
On Holding (NYSE:) has ambitious growth plans, aiming to double its net sales between 2023 and 2026 to at least CHF3.55 billion (CHF1 = $1.0893), the company said today.
Shares rose 5.8% in early Wednesday trade.
Additionally, the company aims to achieve a gross profit margin exceeding 60% by 2026 and a robust adjusted EBITDA margin of 18% or more by the same year.
“We are extremely proud and pleased with how we have been able to successfully deliver on our mission and growth strategies over the past two years,” said Marc Maurer, co-CEO.
“The strength of our brand and products, our outstanding team and innovation capabilities, as well as the very large addressable market, give us numerous opportunities to grow. We are staying true to our core, with controlled expansion into adjacencies, to continue on our path towards the vision to be the most premium global sportswear brand.”
Furthermore, On Holding has set long-term targets, including:
- An apparel share of 10% or more in relation to overall net sales.
- An own retail share of 10% or more in relation to overall net sales.
- A China share of 10% or more in relation to overall net sales.
On also plans to continue driving profitability beyond 2026, with a target of achieving net sales growth of 20-25% per year and exceeding a 20% adjusted EBITDA margin.
“All else equal, we would expect FY23E adj. EBITDA FactSet consensus to remain unchanged at c.CHF270mn,” Goldman Sachs analysts commented in a note.
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