Key Takeaways
- On Holding (ONON) shares plummeted approximately 11% following Martin Hoffmann’s announcement of his departure scheduled for 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 leadership restructuring includes Frank Sluis as the new CFO and Scott Maguire’s elevation to President & COO.
- Hoffmann will continue in an advisory capacity until March 2027.
- Analyst reactions varied, with Jefferies maintaining a Sell rating at $30 and Williams Trading lowering its target to $41 from $44 due to transition uncertainties.
Shares of On Holding (ONON) experienced a significant decline on Wednesday following the Swiss performance footwear company’s revelation that CEO Martin Hoffmann intends to depart the organization on May 1, 2026. The stock tumbled approximately 11%, bringing it dangerously close to its 52-week nadir.
Hoffmann’s tenure at On Holding spans 13 years, during which he held dual responsibilities as CEO and CFO. He indicated his intention to pursue a sabbatical and dedicate time to charitable endeavors. During a subsequent analyst conference call, Hoffmann explained that he deemed it appropriate to disclose his exit plans before internal strategic sessions centered on the company’s vision through 2030.
His transition includes an advisory role extending through March 2027 to facilitate a smooth leadership handover.
Co-Founders Reclaim Operational Leadership
Assuming the co-CEO positions are David Allemann and Caspar Coppetti, who were among On Holding’s founding members. Both executives will retain their current responsibilities as executive co-chairmen alongside their new duties.
The third founding partner, Olivier Bernhard, will not assume a formal executive title but will continue concentrating on innovation and athlete relations as a member of the executive board.
During the analyst discussion, Coppetti emphasized that the founding team has maintained active involvement in company operations throughout its expansion trajectory.
The organization also announced Frank Sluis as the incoming CFO, taking over the financial oversight previously managed by Hoffmann. Scott Maguire, formerly serving as Chief Innovation Officer and COO, has been elevated to President & COO, with expanded responsibilities encompassing R&D, production, marketing, and worldwide operations.
Company leadership characterized these organizational changes as essential to On Holding’s “next chapter of international growth.” The brand achieved over CHF 3 billion in annual net sales during 2025.
Wall Street Responds With Mixed Sentiment
Financial analysts demonstrated varied perspectives, though predominantly cautious reactions followed the announcement.
Jefferies analyst Randal Konik reaffirmed his Sell recommendation with a $30 price objective. He interprets the leadership transition 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 more limited than current investor expectations suggest, potentially leading to decelerating growth and margin compression.
Williams Trading reduced its price forecast from $44 to $41 while maintaining a Hold stance. The firm expressed reservations regarding On Holding’s organizational infrastructure to effectively navigate the complexities of wholesale distribution channels. Nevertheless, it recognized the company’s robust fundamentals—featuring 63% gross margins and 30% revenue expansion over the trailing twelve months.
Optimism persists among some analysts. BTIG sustained its Buy rating with a $70 price objective. Telsey Advisory Group adjusted its target downward from $65 to $60 but retained an Outperform recommendation.
The collective Wall Street perspective leans positive. With 16 Buy ratings, one Hold, and one Sell issued during the past three months, ONON maintains a Strong Buy consensus rating with an average price target 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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