On Brings Founders Back as CEOs, Bets Big on Apparel to Sustain 30% Growth

Quick Facts

David Allemann and Caspar Coppetti became co-CEOs on May 1, 2026, replacing Martin Hoffmann after his 13-year tenure
On surpassed CHF 3.0 billion in net sales for the first time in 2025, up 30% year-over-year
Apparel grew 57.5% at constant currencies in Q1 2026 and exceeded 10% of direct-to-consumer sales for the first time

On Running brought its founders back to run the company as it pushes into apparel and targets CHF 3.51 billion in 2026 sales. David Allemann and Caspar Coppetti took over as co-CEOs on May 1, 2026, while Scott Maguire was promoted to President and COO. Frank Sluis joined as CFO on the same date.

Martin Hoffmann stepped down after 13 years as CFO and five years as CEO. The company said Hoffmann plans to pursue philanthropic interests following what it called a planned transition.

Allemann framed the move as an offensive play. “The best time to elevate your game is when you are already breaking your own records,” he said. “By unifying founder-led strategic intent with our operational core, we aim to move faster, stay relentlessly focused on product heat, and continue pushing the boundaries of what a sportswear brand can be.”

Analyst reaction was split. Jefferies analyst Randall Konik drew comparisons to K-Swiss and Puma, brands he described as having “a niche, then a star moment, then fade.” Baird Equity Research senior analyst Jonathan Komp took the opposite view, writing that Allemann and Coppetti are “exceptionally positioned to lead On’s next chapter of growth.”

The Numbers Behind the Transition

On’s 2025 full-year net sales reached CHF 3,014.0 million, a 30.0% increase year-over-year and 35.6% growth at constant currencies. Gross profit margin expanded to 62.8% and adjusted EBITDA margin hit 18.8%.

Q1 2026 net sales rose 14.5% to CHF 831.9 million, or 26.4% on a constant currency basis. The company projects at least 23% constant-currency growth for the full year, implying reported net sales of at least CHF 3.51 billion with gross margins of at least 64.5%.

On’s results land as Nike and Hoka face declining or slowing sales amid tariff pressure and weakening discretionary spending. On has refused to discount, including during Black Friday. Former CEO Hoffmann told CNBC that the brand’s “focus on premium, on full-price sales, on innovation” is “setting ourselves apart.”

Apparel as the Next Growth Engine

On describes its category expansion strategy as growing “toe to head.” Apparel generated $66.5 million in Q1 2026, representing 57.5% growth at constant currencies and crossing 10% of direct-to-consumer sales for the first time.

Chief Product Officer Danielle Petesic said this marks a turning point. “This is the first time in the company’s apparel history that we’re talking about innovation in apparel and accessories,” she said. Petesic said On is connecting performance, fashion, and commercial relevance rather than treating apparel as a merchandising extension of footwear.

The five-year-old apparel division is developing racing kits, sports bras, socks, trail equipment, and a 50-gram running jacket. The team is also experimenting with thermoregulation, zoned ventilation, and textile-to-textile recycling.

On’s long-term target is an apparel share of 10% or more across the business. Its Williamsburg store in New York City already runs at a 16% apparel share. Its Yitian Shenzhen store in China reaches 26%.

Ann Sterner, senior director of brand studio at On, said product development evaluates athletes’ psychological needs alongside physical and environmental demands. “If you look good, you feel good,” Sterner said. “They call it peacocking, but it’s a huge psychological driver.”

Coppetti told Glossy that On does not separate performance from lifestyle. “What performance means for a runner translates into comfort for everyday wear,” he said. In apparel, he added, lightness and stretch should produce clothing “you can barely feel when you wear it.”

Co-CEO Coppetti described Q1 as “an outstanding start to the year and another strong proof point of our premium strategy in action,” adding that On is becoming “more global, more multi-dimensional and more deeply rooted in different communities around the world.”