$ONON (-8.96%)

🔹 Revenue: CHF 794.4M (Est. CHF 764M) 🟢; +24.9% YoY

🔹 EPS: CHF 0.36 (Est. CHF 0.27) 🟢

🔹 Adj EBITDA: CHF 179.9M; +49.8% YoY

🔹 Gross Margin: 65.7%; +510 bps YoY

FY25 Guide:

🔹 Revenue: CHF 2.98B (Est. CHF 2.97B) 🟢

🔹 Adj EBITDA Margin: > 18.0% (Prior 17-18%) 🟢

🔹 Gross Margin: around 62.5%

Q3 Segment Sales

🔹 DTC: CHF 314.7M; UP +27.6% YoY

🔹 Wholesale: CHF 479.6M; UP +23.3% YoY

🔹 EMEA: CHF 213.3M; UP +28.6% YoY

🔹 Americas: CHF 436.2M; UP +10.3% YoY

🔹 APAC: CHF 144.9M; UP +94.2% YoY

🔹 Shoes: CHF 731.3M; UP +21.1% YoY

🔹 Apparel: CHF 50.1M; UP +86.9% YoY

🔹 Accessories: CHF 13.0M; UP +145.3% YoY

Other Metrics:

🔹 Net Income: CHF 118.9M; UP +289.8% YoY

🔹 Net Income Margin: 15.0%; UP from 4.8% YoY

🔹 Adjusted EBITDA Margin: 22.6%

🔹 Cash and Cash Equivalents: CHF 961.8M; UP +4.1% vs. Dec 31, 2024

🔹 Net Working Capital: CHF 565.8M; UP +13.4% vs. Dec 31, 2024

Commentary:

🔸 “This quarter was another one for the record books, a true showcase of our premium strategy in action.”

🔸 “Our focus on operational excellence and technology is making us faster, smarter, and more agile.”

$ONON (-8.96%)

🔹 EPS: (CHF0.09) 🔴 (Est. CHF0.14)

🔹 Revenue: CHF749.2M 🟢 (Est. CHF703.8M); +32% YoY (+38.2% CC)

FY25 Guidance (Raised)

🔹 Revenue: CHF2.91B 🟡 (Est. CHF2.93B); ≥+31% CC (prev. ≥+28%)

🔹 Gross Margin: 60.5–61.0% (prev. 60.0–60.5%)

🔹 Adj. EBITDA Margin: 17.0–17.5% (prev. 16.5–17.5%)

Regional Sales (YoY)

🔹 EMEA: CHF197.8M; +42.9% (+46.1% CC)

🔹 Americas: CHF432.3M; +16.8% (+23.6% CC)

🔹 Asia-Pacific: CHF119.2M; +101.3% (+110.9% CC)

Product Sales (YoY)

🔹 DTC: CHF308.3M; +47.2% (+54.3% CC) – 41.1% of total sales

🔹 Wholesale: CHF441.0M; +23.1% (+28.8% CC)

🔹 Shoes: CHF704.9M; +29.9% (+36.0% CC)

🔹 Apparel: CHF36.7M; +67.5% (+75.5% CC)

🔹 Accessories: CHF7.7M; +133.3% (+143.2% CC)

Other Metrics:

🔹 Net Income: CHF(40.9)M vs CHF30.8M last year

🔹 Gross Profit: CHF460.8M; +35.4% YoY

🔹 Gross Margin: 61.5% (+160 bps YoY)

🔹 Adjusted EBITDA: CHF136.1M; +50% YoY

🔹 Adjusted EBITDA Margin: 18.2% (+220 bps YoY)

Management Commentary

🔸 “Our Q2 results leave no doubt: On is playing the long game... building a resilient brand for decades ahead.” – Co-Founder David Allemann

🔸 “Premium positioning is coming to life across every consumer touchpoint… strong conviction in our strategy.” – CEO & CFO Martin Hoffmann

$ONON (-8.96%)

🔹 Revenue: CHF 726.6M (Est. CHF 680.5M) 🟢; +43.0% YoY

🔹 Adj. EPS: CHF 0.21 (Est. CHF 0.15) 🟢

🔹 Gross Margin: 59.9% vs. 59.7% YoY

🔹 Adj. EBITDA: CHF 119.9M; +54.8% YoY

Segment & Regional Performance

🔹 DTC Sales: CHF 276.9M; +45.3% YoY

🔹 Wholesale Sales: CHF 449.7M; +41.5% YoY

🔹 DTC Share: 38.1% of total revenue

🔹 EMEA Revenue: CHF 168.6M; +33.6% YoY

🔹 Americas Revenue: CHF 437.4M; +32.7% YoY

🔹 Asia-Pacific Revenue: CHF 120.6M; +130.1% YoY

🔹 Shoes: CHF 680.9M; +40.5% YoY

🔹 Apparel: CHF 38.1M; +93.1% YoY

🔹 Accessories: CHF 7.6M; +99.2% YoY

Guidance (FY25)

🔹 Revenue Growth: +28% constant currency → at least CHF 2.86B

🔹 Gross Margin: 60.0% – 60.5%

🔹 Adj. EBITDA Margin: 16.5% – 17.5%

I screened 7 global blue chips with a value/growth balance using my PASS and Buffett-style filters. Here’s the verdict:

🔝 1. Chocoladefabriken Lindt & Sprüngli ($LISP (-2.61%) )

🟩 Score: 89 – Excellent

📈 WB Score: 7 (Grade B)

📌 Insider-led, durable moat, elite brand.

🚨 BUT: Price per share (CHF 12,210!) makes it impractical for my strategy.

🥈 2. Nestlé ($NESN (-1.14%) )

🟨 Score: 75 – Strong

📈 WB Score: 4 (Grade D)

⚖️ Balanced income with global stability. Mildly overvalued but still attractive.

🥉 3. Mondelez ($MDLZ (+0.16%) )

🟨 Score: 70 – Strong

📈 WB Score: 4 (Grade D)

🍫 Snack leader with consistent cash flows. Mildly overvalued, but solid anchor.

⚖️ Honorable Mentions

• Roche ($ROG (-1.98%) ) – ⚖️ Fairly priced, insider-led, great pipeline, but slight value trap warning.
• Zurich Insurance ($ZURN (-4.79%) ) – Stable, shareholder-friendly.
• UBS ($UBSG (-4.25%) ) – Riskier financial play, some trap signals.
• On Holding ($ONON (-8.96%)) – Growth potential, but overvalued; needs close monitoring.

🧠 Strategy Notes

✅ Favoring undervalued or stable-yield stocks with clear rotation plans.

❌ LISP is a dream stock, but high entry price makes it unsuitable for my dividend + compounding approach.

But I’m convinced it would make a fine addition to a portfolio and I will keep an eye on it and have it as one of my white whales!

$ONON (-8.96%)

🔹 EPS: CHF 0.27 (Est. CHF 0.18) 🟢; UP +50% YoY

🔹 Revenue: CHF 606.6M (Est. CHF 594.5M) 🟢; UP +35.7% YoY

Q4 Key Metrics:

🔹 Gross Profit: CHF 376.8M (Est. CHF 367M) 🟢; UP +39.5% YoY

🔹 Gross Margin: 62.1% (Est. 61.7%) 🟢; UP +171 bps YoY

🔹 EBITDA: CHF 99.4M (Est. CHF 97M) 🟢; UP +38.3% YoY

🔹 EBITDA Margin: 16.4% (Est. 16.3%) 🟢; UP +28 bps YoY

🔹 Net Income: CHF 89.5M (Prior CHF -26.8M) 🟢

🔹 Inventory: CHF 419M (Est. CHF 417M) 🟡; UP +17.6% YoY

Segment Performance:

🔹 Wholesale: CHF 310M (Est. CHF 303M) 🟢; UP +28.8% YoY

🔹 Direct-to-Consumer (DTC): CHF 296M (Est. CHF 291M) 🟢; UP +43.1% YoY

Regional Breakdown:

🔹 EMEA: CHF 147M (Est. CHF 137M) 🟢; UP +31.6% YoY

🔹 Americas: CHF 365M (Est. CHF 396M) 🔴; UP +27.9% YoY

🔹 APAC: CHF 74M (Est. CHF 61M) 🟢; UP +117.9% YoY

FY25 Guidance:

🔹 Revenue Growth: 27%+ (Est. 28.2%) 🔴

🔹 Gross Margin: 60.5% (Est. 60.9%) 🔴; DOWN -13 bps YoY

🔹 EBITDA Margin: 17.3% (Est. 17.3%) 🔴; UP +55 bps YoY

🔹 FY25 Revenue Outlook: CHF 2.94B (Est. CHF 2.96B) 🟡

Strategic & Business Updates:

🔹 DTC Growth: Record 48.8% of Q4 Revenue

🔹 Global Expansion: Nearly 50 Own Stores Opened

🔹 Milestone: CHF 100M+ in Apparel Sales

🔹 New Tech: Launched LightSpray™ Innovation

🔹 Brand Momentum: Strengthened via Roger Federer, Zendaya, & FKA twigs Partnerships

CEO David Allemann’s Commentary:

🔸 "2024 was a defining year, elevating On’s presence globally. Our partnerships and continued innovation have made On a beloved brand. Looking ahead, we are confident in sustaining long-term brand love and growth.”