Swiss athletic footwear manufacturer On Holding has appointed co-founders David Allemann and Caspar Coppetti as co-CEOs. The two will succeed Martin Hoffmann, who served as CEO for five years. Hoffmann will remain with the company in an advisory role until 2027.
Earlier this month, the company forecast that its sales growth would slow more than expected this year, triggering a sharp decline in its stock price.
On Holding announced the appointment of co-founders David Allemann and Caspar Coppetti as co-CEOs, replacing Martin Hoffmann after his five-year tenure. The Swiss sportswear company is pursuing global expansion.
The management reshuffle comes as On Holding prepares to enter its "next phase of growth," the company stated in a release on Wednesday.
Shares of On Holding fell 4% in pre-market trading.
Earlier this month, the company projected that its sales growth slowdown this year would be more pronounced than anticipated, leading to a significant drop in its stock price.
Allemann told CNBC at the time, "We don't want to build a brand just for the next few years." He emphasized the company's "premium positioning strategy" and its selective approach to business focus areas.
On Holding went public on the New York Stock Exchange in 2021. Through innovative high-performance footwear and apparel, it has continued to gain market share from established rivals such as Nike and Adidas.
Allemann stated that the company has successfully attracted "active people across all age groups" and has expanded its market share in categories including tennis and running.
Allemann and Coppetti will officially assume their roles as co-CEOs on May 1. On Holding noted that Hoffmann, who previously served as CFO for 13 years, will remain as an advisor until March 2027.
In January, the company appointed Frank Slewis as CFO, effective also on May 1. Scott Maguire will take on the role of President and Chief Operating Officer.
During Hoffmann's leadership, the company completed its initial public offering in 2021 and advanced a three-year strategy aimed at doubling sales by 2026 and becoming "the most premium global sportswear brand."
On Holding stated on Wednesday, "With the strategic roadmap for continued growth in place, the four partners jointly agreed that now is the right time for Martin Hoffmann to step down." The announcement added that Hoffmann will subsequently dedicate his efforts to philanthropic activities.
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