On AG(ONON)2024-03-12 16:44Financial Data and Key Metrics Changes - The company reported significant revenue growth of 47% to CHF 1.79 billion in 2023, with a 55% increase on a constant currency basis, exceeding expectations [37][58] - Gross profit margin increased from 56% to 59.6%, and adjusted EBITDA margin rose from 13.5% to 15.5% [59][80] - The company achieved a record net income of CHF 79.6 million, up from CHF 57.7 million in the prior year, despite significant unrealized FX charges [82] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) share grew from 36.4% to 37.5%, with DTC sales accounting for 46.2% of net sales in Q4 2023, up from 40.7% in Q4 2022 [60][65] - Net sales from shoes grew by 20.4% in Q4, reaching CHF 425.7 million, with the Cloudmonster franchise being a significant contributor [77] - Apparel sales increased by 60.1% in Q4, with DTC channels seeing a 110% growth [75] Market Data and Key Metrics Changes - The Americas region achieved net sales of CHF 300.6 million in Q4, marking the strongest quarter in the region's history, with a constant currency growth of 29% [73] - EMEA net sales grew by 22.9% to CHF 112.5 million in Q4, with a constant currency growth of 26% [72] - APAC reached net sales of CHF 34 million in Q4, corresponding to a growth rate of 57.7%, with over 75% growth on a constant currency basis [74] Company Strategy and Development Direction - The company aims to open an additional 100 brand stores worldwide in the coming years, focusing on showcasing both footwear and apparel [52] - The strategy includes a strong emphasis on performance running products and expanding the apparel line, particularly in tennis and training [91][92] - The company is committed to maintaining a premium brand positioning while expanding its market share and brand awareness [54][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's momentum and the strong demand for products, anticipating a constant currency growth rate of at least 30% for 2024 [101] - The company plans to continue investing in technology and retail expansion to enhance its direct channels and overall market presence [116] - Management highlighted the importance of balancing growth with profitability, aiming for an adjusted EBITDA margin of 16% to 16.5% in 2024 [102] Other Important Information - The company reported a positive cash flow of CHF 163 million, the highest in its history, and ended the year with a cash balance of CHF 495 million [60][86] - The company is focusing on optimizing its inventory and working capital position to support future growth [83][102] Q&A Session Summary Question: What is the revenue guidance for Q1 and the full year? - Management expects constant currency net sales growth of 26% for Q1, translating to reported Swiss Francs net sales of CHF 495 million, with a significantly increased DTC share [107] Question: What are the expectations for store openings in 2024? - The company plans to open approximately 17 to 19 retail locations in 2024, emphasizing the importance of location and size [112] Question: Can you elaborate on the assumptions for DTC and wholesale growth in 2024? - Management reiterated the commitment to a multi-channel strategy, expecting an increase in DTC share while also growing in wholesale channels [116]