Key Takeaways
- On Holding (ONON) shares declined approximately 11% following CEO Martin Hoffmann’s announcement of his May 1, 2026 departure date.
- Co-founders David Allemann and Caspar Coppetti will assume co-CEO responsibilities while maintaining their executive co-chairman positions.
- The company has appointed Frank Sluis as incoming CFO and elevated Scott Maguire to President & COO.
- Hoffmann will continue serving in an advisory capacity until March 2027.
- Analyst sentiment shows division: Jefferies maintains a Sell rating at $30, while Williams Trading lowered its price target from $44 to $41 due to leadership transition uncertainties.
Shares of On Holding (ONON) experienced significant downward pressure on Wednesday following the Swiss athletic footwear company’s disclosure that CEO Martin Hoffmann will depart his role on May 1, 2026. The stock declined approximately 11%, bringing it near its 52-week low.
Hoffmann’s tenure at On Holding spans 13 years, during which he held dual responsibilities as CEO and CFO. According to his statements, he intends to step away from corporate duties to pursue philanthropic interests. During an analyst call, Hoffmann explained his decision to announce the transition before internal strategy sessions centered on the company’s 2030 roadmap.
His advisory role will extend through March 2027 to facilitate a smooth transition.
Co-Founders Return to Operational Leadership
David Allemann and Caspar Coppetti, two of On Holding’s founding members, will assume co-CEO responsibilities. Both individuals will retain their existing positions as executive co-chairmen.
The third founder, Olivier Bernhard, will maintain his focus on product innovation and athlete partnerships as an executive board member without taking a formal operational leadership role.
During the analyst call, Coppetti emphasized that the founding team has maintained active involvement in company operations throughout its expansion phase.
On Holding has also brought Frank Sluis on board as the new CFO, taking over the financial leadership responsibilities previously held by Hoffmann. Scott Maguire, formerly serving as Chief Innovation Officer and COO, has been elevated to President & COO, where he will oversee research and development, manufacturing operations, marketing initiatives, and global business functions.
The leadership restructuring has been characterized by management as preparation for On Holding’s “next phase of global expansion.” The company achieved annual net sales exceeding CHF 3 billion in 2025.
Wall Street Weighs In on Leadership Shift
Analyst responses to the announcement have been mixed, with several firms expressing measured skepticism.
Jefferies analyst Randal Konik maintained his Sell rating with a $30 price target. His analysis suggests the leadership transition reflects increasing operational complexity and intensifying competitive pressures, particularly from Nike. Konik’s position centers on concerns that On Holding’s addressable market may be more limited than current investor expectations, potentially leading to decelerating growth and margin compression.
Williams Trading reduced its price target to $41 from $44 while keeping a Hold rating. The firm expressed questions about whether On Holding possesses sufficient operational infrastructure to navigate the complexities of its wholesale distribution channels. The firm did recognize the company’s solid financial performance, including gross profit margins of 63% and revenue growth of 30% over the trailing twelve months.
Some firms maintain optimistic outlooks. BTIG continues to hold a Buy rating with a $70 price target. Telsey Advisory Group reduced its target to $60 from $65 while maintaining an Outperform rating.
The aggregate Wall Street perspective leans favorable. Across the past three months, 16 analysts have issued Buy ratings, one Hold, and one Sell, resulting in a Strong Buy consensus rating for ONON. The average price target stands at $57.53, representing potential upside exceeding 62% from current trading levels. The stock currently hovers near its 52-week low of $34.38.
