Running brand On grew net sales by over 50% in the fourth quarter and 70% for the year, with both DTC and wholesale channels gaining steam. The company’s DTC business surged 76.7% in Q4, while wholesale increased by 39.3%, according to a company press release.
During the same time period, net loss ballooned by 7,195%. For the year, net loss increased by over 500%. Operating losses also grew substantially, rising by almost 10,000% in Q4 and more than 700% for the year.
Those losses were mostly driven by stock compensation tied to its IPO, and Telsey Advistory Group Managing Director and Senior Research Analyst Cristina Fernández noted that “sales, gross margin and adjusted EBITDA all came in above our expectation. The company also raised its 2022 outlook. So all in, the report was very positive and the brand has a lot of momentum with increasing brand awareness and new product introduction.”Retail Dive