Key Takeaways
- On Holding (ONON) shares tumbled approximately 11% following Martin Hoffmann’s announcement that he will resign as CEO on May 1, 2026.
- Company co-founders David Allemann and Caspar Coppetti are assuming co-CEO responsibilities while maintaining their positions as executive co-chairmen.
- The company appointed Frank Sluis as the new CFO and elevated Scott Maguire to President & COO.
- Hoffmann plans to remain with the organization in an advisory capacity until March 2027.
- Analyst sentiment turned cautious, 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 performance footwear company’s disclosure that CEO Martin Hoffmann will depart his position on May 1, 2026. The announcement triggered an approximately 11% selloff, driving the stock toward its 52-week low territory.
Hoffmann’s tenure at On Holding spans 13 years, during which he held both the CEO and CFO positions simultaneously. According to his statements, he intends to take time off for personal pursuits and dedicate himself to charitable endeavors. During an analyst conference call, Hoffmann explained that he chose to announce his resignation now to align with upcoming strategic planning sessions centered on the company’s 2030 vision.
The departing executive will continue supporting the organization in an advisory role through March 2027 to ensure a smooth leadership transition.
Co-Founders Return to Operational Leadership
Company co-founders David Allemann and Caspar Coppetti will assume the co-CEO positions — alongside On Holding’s original visionaries returning to direct operational control. The duo will retain their current responsibilities as executive co-chairmen while taking on these additional duties.
The company’s third co-founder, Olivier Bernhard, will not assume a formal C-suite title but will continue his involvement in product innovation and athlete partnerships as a member of the executive board.
During the analyst discussion, Coppetti emphasized that the founding team has maintained active participation in the company’s day-to-day operations throughout its expansion journey.
Additionally, the organization announced Frank Sluis as its incoming CFO, who will assume the financial oversight responsibilities previously managed by Hoffmann. Scott Maguire, formerly serving as Chief Innovation Officer and COO, received a promotion to President & COO, expanding his oversight to include R&D, manufacturing, 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 Expresses Mixed Outlook
Analyst responses to the leadership transition leaned toward the cautious side immediately following the announcement.
Jefferies analyst Randal Konik maintained his Sell recommendation with a $30 price objective. His analysis interprets the management restructuring as a response to increasing operational complexity and intensifying competitive pressures, particularly from Nike. Konik continues to argue that On Holding’s addressable market opportunity is overestimated by the investment community, and anticipates potential growth deceleration alongside margin compression.
Williams Trading reduced its price objective from $44 to $41 while keeping a Hold rating. The research firm expressed uncertainty about whether On Holding possesses sufficient operational expertise to effectively navigate the complexities of wholesale channel management. However, the firm recognized the company’s robust business fundamentals — highlighted by 63% gross profit margins and 30% revenue expansion over the trailing twelve months.
Not all analysts adopted a defensive stance. BTIG reaffirmed its Buy rating with a $70 price target. Telsey Advisory Group reduced its target from $65 to $60 but maintained an Outperform recommendation.
The collective Wall Street perspective remains predominantly positive. With 16 Buy ratings, 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 current trading levels. The stock is presently trading near its 52-week low of $34.38.
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