On Holding (ONON) Stock Plunges 11% Following CEO Departure Announcement

Key Takeaways

• On Holding (ONON) shares plummeted approximately 11% following Martin Hoffmann’s announcement of his departure as CEO, effective May 1, 2026.
• Company co-founders David Allemann and Caspar Coppetti will assume co-CEO positions while retaining their executive co-chairman responsibilities.
• The leadership reshuffle includes Frank Sluis as incoming 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 its Sell rating at $30 and Williams Trading lowering its price target from $44 to $41 due to transition uncertainties.

Shares of On Holding (ONON) experienced a significant decline Wednesday following the Swiss athletic footwear company’s disclosure that CEO Martin Hoffmann will depart his position on May 1, 2026. The stock tumbled approximately 11%, bringing it near its 52-week low territory.

On Holding AG, ONON

Hoffmann’s tenure at On Holding spans 13 years, during which he held the dual responsibilities of CEO and CFO. According to his statements, he intends to step away from corporate life to pursue philanthropic interests. During an analyst conference call, Hoffmann explained his decision to announce the transition ahead of internal strategy sessions centered on the company’s vision for 2030.

The outgoing executive will maintain an advisory role through March 2027 to facilitate a smooth transition.

Co-Founders Resume Operational Leadership

The CEO responsibilities will transfer to David Allemann and Caspar Coppetti, who originally founded On Holding and will now serve as co-CEOs. Both executives will simultaneously maintain their positions as executive co-chairmen of the board.

The company’s third co-founder, Olivier Bernhard, won’t assume a formal leadership designation but will continue contributing to 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 operational decisions throughout the company’s expansion trajectory.

Additionally, Frank Sluis has been appointed to the CFO role, taking over the financial oversight responsibilities previously managed by Hoffmann. Scott Maguire, formerly Chief Innovation Officer and COO, has received a promotion to President & COO, with expanded authority over 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 offered varying perspectives on the leadership transition, with several expressing reservation.

Jefferies analyst Randal Konik maintained his Sell recommendation with a $30 price objective. Konik interprets the management shake-up as a response to increasing operational challenges and intensifying competitive pressures, particularly from Nike. He argues that On Holding’s addressable market opportunity is overestimated by investors and anticipates potential growth deceleration alongside margin compression.

Williams Trading reduced its price forecast from $44 to $41 while retaining a Hold stance. The firm expressed uncertainty regarding On Holding’s organizational capability to navigate the complexities inherent in wholesale distribution channels. However, the firm recognized the company’s robust financial performance—highlighted by 63% gross margins and 30% year-over-year revenue expansion.

Not all analysts expressed pessimism. BTIG preserved its Buy recommendation with a $70 price target. Telsey Advisory Group slightly reduced its target from $65 to $60 while maintaining an Outperform rating.

Overall Wall Street sentiment leans positive. Aggregating recent analyst opinions—16 Buy recommendations, one Hold, and one Sell rating over the previous three months—ONON receives a Strong Buy consensus rating. The average price target stands at $57.53, suggesting potential upside exceeding 62% from current trading levels. The stock is presently trading near its 52-week low of $34.38.