On Defies Tariffs and Strong Franc But Faces Internal Leadership Turmoil

The Swiss sports apparel manufacturer On has kicked off the year with robust performance, demonstrating resilience against international tariffs and a strong Swiss franc. The company's first-quarter results showcase continued growth in both revenue and profit, underscoring the enduring appeal of its innovative products. However, beneath this surface of financial success lies a period of significant internal upheaval at the leadership level.

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You can imagine it like in a relationship, where you realize that the next phase is coming.

In recent months, On has seen surprising changes at its helm. The unexpected resignation of former co-CEO Marc Maurer last year paved the way for Martin Hoffmann to lead operations solo. Yet, this arrangement was short-lived, as co-founders David Allemann and Caspar Coppetti announced in March that they would jointly assume the co-CEO role starting in May, leading to Hoffmann's departure after 13 years. The exact motivations behind these rapid personnel shifts remain somewhat opaque to the public.

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The decision to leave the company was made by Hoffmann – although, of course, we discussed the matter together.

Allemann and Coppetti, who now also share the chairmanship of the board, cited the need to elevate the brand to "the next level of global scaling" as a reason for their return to operational leadership. They described Hoffmann's exit as a mutual decision, akin to a relationship evolving to a new phase. While they maintain that much remains the same operationally, the concentration of power with the same two individuals leading both executive and board functions is unusual for a publicly listed company.

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Very little changes.

From the perspective of the Neue Zürcher Zeitung, On's story is a fascinating case study in balancing rapid growth with corporate governance. While international coverage might focus on the impressive sales figures, we highlight the internal dynamics that could impact the company's future trajectory. The leadership instability, coupled with a weak stock performance despite strong fundamentals, raises questions about the company's strategic direction and internal cohesion. This internal turbulence, while perhaps not immediately apparent to the end consumer, is a critical factor for investors and stakeholders, and it's a narrative that deserves close scrutiny within Switzerland.

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Some of the most successful companies are led by founders, and many of these founders have a role as CEO and Chairman.