On Holding pairs D2C momentum with an upbeat FY2025 outlook

Transcript intelligence

What changed

The current analysis moves the story from Q3 momentum and raised FY2024 guidance to a FY2025 plan centered on broader D2C distribution, apparel above CHF 100 million, new products, additional flagship stores, and at least CHF 2.94 billion of revenue.

Guidance delta

Management's FY2025 outlook calls for revenue of at least CHF 2.94 billion, gross margin of about 60.5%, and adjusted EBITDA margin of 17%-17.5%; the supplied analysis identifies the guidance sentiment as raised.

Key takeaways

• Management highlighted FY2024 net sales of CHF 2.32 billion, 33% constant-currency growth, a 60.6% gross margin, and a 16.7% adjusted EBITDA margin.
• D2C reached 48.8% of Q4 sales, supported by 19 new premium retail stores and distributor-led stores in Chile and Jakarta.
• Apparel exceeded CHF 100 million in sales for the first time, with management targeting 10% of total revenue.
• Cloud 6, Cloudboom Max, LightSpray, and geographic expansion—particularly in APAC—are central to the growth plan.

Management priorities

• Scale D2C channels and premium retail.
• Launch and expand Cloud 6, Cloudboom Max, and LightSpray products.
• Open flagship stores in Tokyo, Chengdu, and Shenzhen and expand China's store base.
• Grow apparel toward 10% of revenue through stronger e-commerce and retail integration.