On Holding, the Swiss sneaker maker, has announced a significant leadership change as it faces slowing sales growth. Co-founders David Allemann and Caspar Coppetti have been appointed as co-CEOs, replacing Martin Hoffmann, who served as CEO for five years. Hoffmann will remain as an advisor until March 2027, while Allemann and Coppetti will assume their new roles on May 1. The company stated that this transition is part of its preparation for the 'next growth phase' and a strategic move to scale globally [1].
On shares reacted negatively to the news, falling 4% in premarket trading. Earlier in March, On forecasted that sales growth would slow more than expected this year, which had already sent shares sharply lower. Allemann emphasized the company's 'strategic premium play,' focusing on select franchises and aiming to build a lasting brand, not just for the next few years [1].
On, which went public in 2021 on the New York Stock Exchange, has been gaining market share from legacy competitors such as Nike and Adidas through innovative products in performance footwear and apparel. Allemann noted that the company has attracted an 'ageless athlete' and is expanding its market share in categories like tennis and running [1].
In addition to the CEO changes, Frank Sluis has been named CFO, effective May 1, and Scott Maguire will take on the role of president and chief operating officer. Hoffmann, who previously served as CFO for 13 years, led the company through its IPO and a three-year strategy to double sales by 2026 and become 'the most premium global sportswear brand.' The company stated that the leadership transition is timely, with Hoffmann set to pursue philanthropic interests [1].
CONCLUSION
On Holding's leadership shakeup comes at a pivotal moment as the company faces slower-than-expected sales growth and negative market reaction. The appointment of co-founders as co-CEOs signals a renewed focus on strategic growth and premium positioning. Investors will be watching closely to see if the new leadership can reinvigorate sales and sustain On's momentum in the competitive sportswear market.