On Holding AG announced that long‑time chief executive Martin Hoffmann will step down after a five‑year tenure, with co‑founders David Allemann and Caspar Coppetti assuming the role of co‑chief executive officers effective May 1 2026. Hoffmann will remain an advisor until March 2027, and his Class B super‑voting shares will be converted to Class A shares at the 2026 Annual General Meeting on May 28.
The transition follows a record‑breaking 2025 in which On Holding AG generated net sales of CHF 3.014 billion, up 30 % year‑over‑year and 35.6 % on a constant‑currency basis. Gross profit margin reached 62.8 % and adjusted EBITDA margin 18.8 %, but net income fell 15.9 % to CHF 203.7 million largely due to a significant foreign‑exchange loss. The company’s statement noted that “On was founded on the principle of relentless innovation. Following a record‑breaking 2025 – where annual net sales surpassed CHF 3 billion and gross profit margins reached new heights – the company is leaning forward from its strongest‑ever position.”
On Holding’s shares fell roughly 10 % on the announcement day, reflecting investor concern over the departure of a long‑standing CEO and the shift to a founder‑led co‑CEO model. Analysts highlighted that the change could signal a response to increasing business complexity and competitive pressure from brands such as Nike. Tom Nikic of Needham noted that Hoffmann had been “the face” of the company for investors, and his exit, coupled with prior C‑suite shuffling, may have shocked the investor base.
The company’s management emphasized that the new structure is designed to “even more closely connect founder‑led strategic intent with execution, ensuring On remains agile and decisive while continuing to scale.” Allemann said, “Surpassing the CHF 3 billion annual revenue milestone with record profitability…” while Coppetti added, “It is difficult to put into words how impactful Martin has been… From our early days through a landmark IPO, his commitment to our culture and financial discipline has been instrumental.” Hoffmann remarked, “Crossing the CHF 3 billion mark is a historic achievement for On Holding AG. Our focus on innovation and expanding our direct‑to‑consumer channels has driven significant growth. It has been an absolute privilege to shape On and this amazing team alongside the founders for over a decade. The timing to move on feels right. Over the past 12 months, we have been highly engaged in defining the next growth horizon and leadership structure for On.”
Looking ahead, On Holding AG forecasts net sales growth of at least 23 % on a constant‑currency basis for 2026, targeting CHF 3.44 billion. Gross profit margin is expected to reach at least 63.0 %, and adjusted EBITDA margin is projected between 18.5 % and 19.0 %. The company attributes this outlook to continued innovation, a 76 % growth in apparel at constant currency, and expanding direct‑to‑consumer channels, particularly in the Asia‑Pacific region. Headwinds include foreign‑exchange volatility and intensified competition from major sportswear players, which could pressure margins if not managed carefully.
The leadership transition signals confidence in On Holding’s growth trajectory, but the market’s reaction underscores the importance of clear communication about strategic intent and risk management. With strong financial fundamentals and a clear focus on innovation and direct‑to‑consumer expansion, the company remains well positioned, though investors will watch how the new co‑CEO team navigates competitive pressures and currency headwinds.
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