On hold has named co-founders David Allemann and Caspar Coppetti as co-CEOs, replacing Martin Hoffmann after a five-year stint as CEO, as the Swiss sneaker maker looks to expand globally.
The management shakeup comes as On prepares to enter its “next phase of growth,” the company said in a statement Wednesday.
Shares were down 10% as of midday.
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On stocks since the start of the year.
Earlier this month, the company forecast that sales growth would slow more than expected this year, sending stocks sharply lower.
“We don’t want to build a brand just for years to come,” Allemann told CNBC at the time, emphasizing the company’s “premium strategic play,” including being selective in the franchises it promotes.
On, which went public in 2021 on the New York Stock Exchange, has taken market share from its historical competitors such as Nike And Adidas with innovative performance footwear and apparel products.
Allemann said the company was able to capture an “ageless athlete” and take additional market share in various categories, including tennis and running.
Allemann and Coppetti will assume their roles as co-CEOs on May 1. Hoffmann, who also served as CFO for 13 years, will remain an advisor until March 2027, On said.
In January, the company named Frank Sluis as chief financial officer, also effective May 1. Scott Maguire will assume the role of president and chief operating officer.
Hoffman led the company through its IPO in 2021 and through its three-year strategy to double sales by 2026 and become “the world’s most premium sportswear brand.”
“With the strategic roadmap for continued growth in place, all four partners collectively recognize that this is the right time for Martin Hoffmann to step down,” On said Wednesday, adding that Hoffman would pursue philanthropic interests.
— CNBC’s Gabrielle Fonrouge contributed to this report
