Key Takeaways
- On Holding (ONON) stock plummeted approximately 11% following the announcement that CEO Martin Hoffmann will resign on May 1, 2026.
- Company co-founders David Allemann and Caspar Coppetti will assume co-CEO positions while maintaining their executive co-chairman responsibilities.
- The company appointed Frank Sluis as the new CFO and elevated Scott Maguire to President & COO.
- Hoffmann will continue in an advisory capacity until March 2027.
- Analyst responses varied, with Jefferies maintaining a Sell rating at $30 and Williams Trading lowering its target from $44 to $41 due to leadership transition concerns.
Shares of On Holding (ONON) experienced a significant decline on Wednesday following the Swiss athletic footwear company’s revelation that CEO Martin Hoffmann will depart from his position on May 1, 2026. The stock tumbled approximately 11%, bringing it near its 52-week low point.
Hoffmann’s tenure with On Holding spans 13 years, during which he held dual responsibilities as both CEO and CFO. He indicated his intention to take time away from corporate life to pursue philanthropic endeavors. During a subsequent analyst conference call, Hoffmann explained that he chose to announce his exit before internal strategic sessions centered on the company’s 2030 goals.
The departing CEO will continue supporting the organization in an advisory role until March 2027 to ensure a smooth transition.
Co-Founders Return to Executive Leadership
David Allemann and Caspar Coppetti, two of On Holding’s founding members, will jointly assume CEO responsibilities. Both executives will retain their current positions as executive co-chairmen alongside their new roles.
The company’s third co-founder, Olivier Bernhard, will not take on a formal leadership position but will continue concentrating on product innovation and athlete relations as an executive board member.
During the analyst call, Coppetti emphasized that the founding team has remained actively engaged in the company’s operations throughout its expansion phase.
Additionally, the company announced Frank Sluis as the incoming CFO, taking over the financial leadership responsibilities previously held by Hoffmann. Scott Maguire, formerly Chief Innovation Officer and COO, has been promoted to President & COO, expanding his oversight to include R&D, manufacturing, marketing, and worldwide operations.
Company leadership characterized these changes as strategic moves supporting On Holding’s “next phase of global expansion.” The organization exceeded CHF 3 billion in annual net sales during 2025.
Wall Street Responds With Mixed Sentiment
Analyst reactions to the leadership transition ranged from cautious to skeptical in the immediate wake of the announcement.
Jefferies analyst Randal Konik maintained his Sell recommendation with a $30 price objective. Konik interprets the leadership restructuring as a response to increasing operational complexity and intensifying competitive pressures, particularly from Nike. He continues to believe On Holding’s addressable market is more limited than investor expectations suggest, anticipating potential growth deceleration and margin compression.
Williams Trading reduced its price target to $41 from $44 while maintaining a Hold stance. The firm expressed uncertainty about whether On Holding possesses sufficient operational expertise to effectively navigate the complexities of its wholesale distribution channels. However, the firm recognized the company’s robust fundamentals, including 63% gross margins and 30% revenue expansion over the trailing twelve months.
Some analysts remain optimistic. BTIG maintained its Buy rating with a $70 price objective. Telsey Advisory Group reduced its target to $60 from $65 but preserved an Outperform rating.
Overall Wall Street sentiment leans positive. With 16 Buy recommendations, one Hold, and one Sell rating issued over the last three months, ONON maintains a Strong Buy consensus rating with an average price objective of $57.53 — suggesting more than 62% potential upside from current trading levels. The stock is currently trading close to its 52-week low of $34.38.
