Swiss Athletic Shoe Company Sees 27.8% Increase in Net Sales, Credits Zendaya’s Influence

  • On Holdings reports Q2 net sales rose 27.8% YoY to 567.7 million Swiss francs ($656 million)
  • Direct-to-consumer (DTC) net sales increased by 28.1% YoY to 209.4 million Swiss Francs
  • Wholesale sales rose 27.6% YoY to 358.2 million Swiss francs
  • Gross profit margin reached 59.9% from 59.5% a year ago
  • Net income increased more than nine-fold to 30.8 million Swiss francs
  • Zendaya’s influence on the brand has been significant since joining as ambassador
  • On plans to open 100 stores in the next few years, including locations in Paris and Hong Kong
  • Gross profit margin expected to increase in the second half of this year and first half of next year
  • Wholesale channel outperformed expectations, putting pressure on DTC margins

On Holdings, the Swiss athletic shoe company, reported a 27.8% year-over-year increase in Q2 net sales to 567.7 million Swiss francs ($656 million). Direct-to-consumer (DTC) net sales rose by 28.1% YoY to 209.4 million Swiss Francs, while wholesale sales increased by 27.6% to 358.2 million Swiss francs. The company’s gross profit margin reached 59.9%, up from 59.5% a year ago, and net income rose more than nine-fold to 30.8 million Swiss francs. Actress and singer Zendaya, who joined the brand as an ambassador recently, has had a significant impact on On’s growth. The company plans to open 100 stores in the coming years, including locations in Paris and Hong Kong. Executives expect gross profit margin to increase in the second half of this year and first half of next year as DTC sales continue to outpace wholesale revenue. However, the wholesale channel’s strong performance put pressure on DTC margins.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about On Holdings’ Q2 net sales, Zendaya’s influence on the company, and their growth strategy. It also includes relevant details about the Olympics and DTC channels. However, it contains some speculation about Nike’s DTC strategy and analyst opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about On Holdings’ Q2 financial performance and Zendaya’s influence on the company, but it also includes some irrelevant details such as the mention of the Olympics and a brief discussion about Nike’s DTC strategy. The article could have focused more on the company’s growth strategy and its future plans without bringing up other brands.
Financial Relevance: Yes
Financial Markets Impacted: On Holdings’ stock and related athletic shoe companies
Financial Rating Justification: The article discusses On Holdings’ Q2 financial results, the impact of their new brand ambassador Zendaya on sales, and their expansion plans, which can affect the company’s stock price and performance in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

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