Summary by Futu AI
On Holding delivered robust Q2 2024 results with net sales increasing 27.8% to CHF 567.7 million, driven by 28.1% growth in DTC sales and 27.6% growth in wholesale. Gross profit margin expanded to 59.9% from 59.5%, while net income surged 834% to CHF 30.8 million. The company showed strong performance across all regions, with Asia-Pacific growing 73.7%.The company's financial position remained solid with cash and cash equivalents increasing 32% to CHF 652.4 million. On secured a new CHF 700 million credit facility in July 2023, providing additional financial flexibility. However, the ongoing transition of the Atlanta warehouse has led to some product availability constraints, which are expected to continue in H2 2024.Looking ahead, On continues to focus on expanding its global presence while managing inventory efficiently. The company maintained its emphasis on innovation and sustainability, with product range expansion beyond Performance Running into Outdoor, All Day, Tennis and Training categories. The DTC channel showed particular strength, increasing to 36.9% of total sales.
