On Holding has named co-founders David Allemann and Caspar Coppetti as co-CEOs, replacing Martin Hoffmann after a five-year tenure as CEO, as the Swiss sneaker maker looks to scale globally.
The leadership shakeup comes as On is preparing to enter its “next growth phase,” the company said in a statement Wednesday.
On shares were down 10% in midday trading.
On shares year-to-date.
Earlier this month, the company forecasted that sales growth would slow more than expected this year, sending shares sharply lower.
“We don’t want to build a brand just for the next years,” Allemann told CNBC at the time, highlighting the company’s “strategic premium play” including being selective in which franchises they push.
On, which went public in 2021 on the New York Stock Exchange, has been taking market share from legacy competitors such as Nike and Adidas with innovative products in performance footwear and apparel.
Allemann said the company managed to win over an “ageless athlete” and is taking additional market share in a variety of categories, including tennis and running.
Allemann and Coppetti will assume their co-CEO roles on May 1. Hoffmann, who was also previously held the position of chief financial officer for 13 years, will remain as an advisor until March 2027, On said.
In January, the company named Frank Sluis as CFO, also effective May 1. Scott Maguire will take on the role of president and chief operating officer.
Hoffman led the company through its initial public offering in 2021 and through its three-year strategy to double sales by 2026 and become “the most premium global sportswear brand.”
“With the strategic roadmap for continued growth in place, the four partners collectively recognize that this is the right moment for Martin Hoffmann to step down,” On said Wednesday, adding that Hoffman will pursue philanthropic interests.
— CNBC’s Gabrielle Fonrouge contributed to this report