Gross profit margin reached 64.2% in the quarter, up from 59.9% a year earlier, while net income rose 82.2% to CHF 103.3 million. Adjusted EBITDA climbed 45.4% to CHF 174.3 million, pushing the adjusted EBITDA margin to 21.0% from 16.5%.
Apparel was a standout, with net sales climbing 45.1% to CHF 55.3 million, or 57.5% on a constant currency basis. The Asia-Pacific region led all geographies, posting constant currency sales growth of 61.4% to reach CHF 174 million, or more than 20% of global net sales, with China and South Korea cited as key contributors, the company said.
Co-CEO Caspar Coppetti told Reuters that a clothing line developed with actor and brand ambassador Zendaya is performing well, and that On is targeting younger, female consumers. Apparel penetration in China has reached as high as 30%, compared with about 6% companywide, according to CNBC.
The Americas, On's largest region by revenue, generated CHF 450.7 million in sales during the quarter, a 17.1% increase in constant currency terms — a deceleration from the 28.6% growth recorded in the year-ago period, according to Reuters.
The updated profit outlook embeds a 20% incremental tariff rate on products imported to the U.S. from Vietnam and excludes any potential tariff refunds, the company said.
Effective May 1, the company installed co-founders David Allemann and Caspar Coppetti as joint chief executives in place of Martin Hoffmann, while Frank Sluis — who comes from supermarket group Ahold Delhaize — stepped into the CFO role, according to Reuters.
