Shares of On Holding AG (ONON) are down about 3.6% to $33.54 in Thursday trading, extending a recent pullback as the market continues to reprice the company after a top leadership change. The upcoming transition will place co-founders Caspar Coppetti and David Allemann into the co-CEO roles effective May 1, 2026, with current CEO Martin Hoffmann stepping down and remaining in an advisory capacity.

The selloff reflects investor uncertainty around execution during a handoff at a time when On is trying to sustain premium, full-price growth while scaling newer initiatives like LightSpray and expanding apparel. Even when founders are viewed as strong stewards of brand and product, leadership transitions can raise questions about near-term operating cadence, wholesale relationships, and how aggressively the company will pursue growth versus profitability.

ONON’s decline is also landing in a weak tape for athletic footwear and apparel, where tariff-related cost risk and demand volatility have been pressuring sentiment. The sector has seen heightened sensitivity to any hint of margin pressure or slowing growth, and On’s stock has been moving with the group as investors reassess what tariffs and promotional activity could mean for 2026 profitability.