On Holding Shares Plunge 11% as Co-CEOs Take Helm, Guidance Unchanged
On Holding shares tumbled 11% after CEO Martin Hoffmann’s planned May exit and cofounders David Allemann and Caspar Coppetti stepping in as co-CEOs with Scott Maguire promoted to president and COO. The company reaffirmed 2026 guidance for at least 23% net sales growth to CHF3.44B and 63% gross margin.
1. CEO Change Details
On Holding announced that CEO Martin Hoffmann will take a planned hiatus in May to pursue philanthropic interests. Cofounders David Allemann and Caspar Coppetti will assume co-CEO roles while Scott Maguire is promoted to president and chief operating officer, marking the second CEO transition within a year.
2. Stock Reaction
Shares fell over 11% in early trading following the leadership announcement, reflecting investor concerns over governance stability and execution during a critical global expansion phase.
3. 2026 Guidance Reaffirmed
The company confirmed its full-year 2026 targets: net sales growth of at least 23% on a constant currency basis, implying CHF3.44 billion in revenue, a gross profit margin of at least 63%, and an adjusted EBITDA margin between 18.5% and 19%.
4. Analyst Concerns
Analysts highlight several headwinds including a slowdown in the Americas business, particularly US sales growing just 13% in 2025, weakening direct-to-consumer performance, rising paid search costs, and questions over total addressable market size that could pressure future growth and margins.