Quick Summary
- On Holding (ONON) shares plummeted approximately 11% following the announcement that CEO Martin Hoffmann will depart on May 1, 2026.
- Company co-founders David Allemann and Caspar Coppetti will assume joint CEO responsibilities while maintaining their positions as executive co-chairmen.
- The leadership reshuffle includes Frank Sluis joining as CFO and Scott Maguire’s elevation to President & COO.
- Hoffmann will continue in an advisory capacity until March 2027.
- Wall Street analysts remain divided, with Jefferies maintaining a Sell rating at $30 and Williams Trading lowering its target from $44 to $41 amid leadership transition worries.
Shares of On Holding (ONON) experienced significant downward pressure on Wednesday following the Swiss performance footwear company’s disclosure that CEO Martin Hoffmann will depart from his role effective May 1, 2026. The stock tumbled approximately 11%, bringing it dangerously close to its 52-week bottom.
Hoffmann’s tenure at On Holding spans 13 years, during which he held dual responsibilities as chief executive officer and chief financial officer. In explaining his decision, Hoffmann indicated plans to step away from corporate life to pursue philanthropic interests. During an analyst conference call, he emphasized that announcing his exit prior to internal strategic sessions centered on the company’s 2030 vision was the appropriate course of action.
The outgoing CEO will maintain an advisory role through March 2027 to facilitate a smooth leadership transition.
Co-Founders Reclaim Executive Leadership
David Allemann and Caspar Coppetti, two of On Holding’s founding members, will jointly assume CEO responsibilities. Both executives will simultaneously retain their positions as executive co-chairmen of the board.
Olivier Bernhard, the third co-founder, will not take on a designated leadership position but will continue his work on product innovation and athlete relations as an executive board member.
During the analyst discussion, Coppetti emphasized that the founding team has maintained active involvement in company operations throughout its expansion trajectory.
The organizational restructuring also brings Frank Sluis aboard as the new chief financial officer, taking over the finance responsibilities previously managed by Hoffmann. Scott Maguire, formerly Chief Innovation Officer and COO, has been elevated to President & COO, with expanded oversight of research and development, production, marketing, and worldwide operations.
Leadership characterized these changes as positioning On Holding for its “next phase of global expansion.” The organization exceeded CHF 3 billion in annual net sales during 2025.
Wall Street Responds With Reserved Optimism
The Street’s immediate response to the leadership announcement leaned toward caution, though opinions varied.
Jefferies analyst Randal Konik reaffirmed his Sell recommendation with a $30 price objective. He interprets the management transition as a response to increasing operational complexity and intensifying competitive pressures, particularly from Nike. Konik contends that On Holding’s addressable market opportunity is more limited than current investor expectations suggest, warning of potential growth deceleration and margin compression ahead.
Williams Trading reduced its price objective from $44 to $41 while maintaining a Hold stance. The firm expressed uncertainty regarding whether On Holding possesses sufficient operational infrastructure to effectively navigate the complexities of its wholesale distribution channels. However, the firm acknowledged the company’s robust financial performance, including 63% gross profit margins and 30% revenue expansion over the trailing twelve months.
Not all analysts are bearish on the transition. BTIG maintained its Buy recommendation with a $70 price objective. Telsey Advisory Group slightly reduced its target from $65 to $60 while preserving an Outperform rating.
Overall analyst sentiment remains favorable. With 16 Buy recommendations, one Hold, and one Sell issued over the past three months, ONON holds a Strong Buy consensus rating with an average price objective of $57.53 — suggesting potential upside exceeding 62% from present levels. The stock is currently trading near its 52-week low of $34.38.
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