Key Highlights
- On Holding (ONON) shares plummeted approximately 11% following Martin Hoffmann’s announcement that he will resign as CEO effective May 1, 2026.
- Company co-founders David Allemann and Caspar Coppetti will assume co-CEO responsibilities while maintaining their positions as executive co-chairmen.
- The company appointed Frank Sluis as new CFO and elevated Scott Maguire to President & COO.
- Hoffmann plans to continue in an advisory capacity until March 2027.
- Analyst reactions varied: Jefferies maintained its Sell rating at $30, while Williams Trading reduced its price target from $44 to $41 amid leadership transition worries.
Shares of On Holding (ONON) experienced significant downward pressure Wednesday following the Swiss performance footwear company’s disclosure that CEO Martin Hoffmann will depart his position on May 1, 2026. The stock declined approximately 11%, bringing it dangerously close to its 52-week trough.
With 13 years of service at On Holding, Hoffmann has held dual responsibilities as both chief executive and chief financial officer. He indicated plans to step back for personal reasons and pursue philanthropic endeavors. During an analyst conference call, Hoffmann explained his decision to announce the transition ahead of internal strategy sessions centered on the company’s 2030 vision.
The outgoing CEO will continue supporting the organization in an advisory role through March 2027 to ensure a smooth leadership transition.
Co-Founders Return to Operational Leadership
David Allemann and Caspar Coppetti, who co-founded On Holding, will jointly assume CEO responsibilities. Both individuals will retain their current positions as executive co-chairmen, effectively managing dual roles.
The third founding member, Olivier Bernhard, will not assume a formal leadership designation but will maintain his focus on innovation, product strategy, and athlete partnerships as an executive board member.
Coppetti emphasized during the analyst discussion that the founding team has remained deeply engaged in operational matters throughout the company’s expansion trajectory.
Additionally, the organization tapped Frank Sluis to fill the CFO position, taking on the financial oversight responsibilities previously managed by Hoffmann. Scott Maguire, formerly serving as Chief Innovation Officer and COO, received a promotion to President & COO, with expanded oversight including research and development, production, marketing, and worldwide operations.
Company leadership characterized these organizational changes as positioning On Holding for its “next phase of global expansion.” The athletic brand exceeded CHF 3 billion in annual net sales during 2025.
Wall Street Responds With Mixed Sentiment
Financial analysts demonstrated varied responses to the leadership announcement, though sentiment leaned toward caution.
Jefferies analyst Randal Konik reaffirmed his Sell rating with a $30 price objective. He interprets the leadership restructuring as evidence of increasing operational challenges and intensifying competitive pressures, particularly from Nike. Konik contends that On Holding’s addressable market opportunity is more limited than current investor expectations suggest, potentially leading to decelerated growth and margin compression.
Williams Trading lowered its price objective from $44 to $41 while maintaining a Hold stance. The firm expressed uncertainty regarding whether On Holding possesses sufficient operational sophistication to navigate the complexities of wholesale distribution channels. However, the firm recognized the company’s robust fundamentals — featuring 63% gross margins and 30% revenue expansion over the trailing twelve-month period.
Optimism persists among some analysts. BTIG reaffirmed its Buy rating with a $70 price objective. Telsey Advisory Group modestly reduced its target from $65 to $60 while preserving an Outperform rating.
The collective Wall Street perspective remains largely positive. With 16 Buy recommendations, one Hold, and one Sell rating issued within the past three months, ONON holds a Strong Buy consensus rating. The average analyst price target stands at $57.53 — suggesting potential upside exceeding 62% from current trading levels. The stock is currently positioned near its 52-week low of $34.38.
