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On Running reported record first-quarter earnings on Tuesday, posting a 67.9% increase in revenue to $237.3 million, far exceeding analysts’ estimates of $167.8 million.
Net income reached roughly $14.4 million.
Co-CEO and CFO Martin Hoffmann said On was able to ship more products than expected — over 1 million pairs of shoes were shipped in March, the first time the company has reached that milestone in a month.
Hoffmann added that On was still affected by the transitory supply shortage, but the quarter also marked On’s biggest product launch: the Cloud 5, which is made with 44% of recycled content.
- On’s shoes revenue grew 69% to $224.1 million.
- Apparel revenue increased 44.9% to $11.5 million.
- Accessories revenue jumped 111.8% to $1.8 million.
On The Future
With help from the company’s product launches, feedback from retail channels, and strength of the supply chain, On raised its full-year guidance to meet or exceed $1 billion — 44% year-over-year growth.
During the quarter, On also revealed a new cushioning technology called Cloudtec Phase that will launch spring of next year.
In the second half of 2022, On plans to expand its presence in Latin America, introducing Argentina, Bolivia, Chile, Colombia, Peru, and Uruguay as distributor markets.
