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<\/p>\n\n\tSixteen years after cofounders Olivier Bernhard, David Allemann and Caspar Coppetti came together to start On, the Swiss athletic company has defied the odds and become one of the athletic footwear industry\u2019s most formidable brands. But can the momentum continue? <\/p>\n
\n\tDuring a multiday tour and summit at On\u2019s headquarters in Zurich late last month, the phrase spoken by many employees \u2014 \u201cwe\u2019re growing very fast\u201d \u2014\u00a0was almost inescapable.<\/p>\n
\n\tAnd the proof is in the company\u2019s earnings results. In March, On reported that annual net sales in fiscal 2025 surpassed 3.0 billion Swiss francs, approximately $3.72 billion, for the first time, an increase of 30 percent from fiscal 2024.<\/p>\n
\n\tThe gains continued into the first quarter of 2026, with On stating in May that it exceeded 800 million Swiss francs, approximately $991.64 million, in quarterly net sales for the first time, an increase of 14.5 percent the same time last year.<\/p>\n
\n\tSo, what\u2019s fueling this expansion? On cofounder and co-chief executive officer Coppetti told FN in an exclusive interview at the company\u2019s headquarters in Zurich last month that it comes down to innovation.<\/p>\n
\n\t\u201cAt the very core, On is an innovation company,\u201d Coppetti said. \u201cAnd as consumers become even more intentional on where they spend their money, especially in these times of turmoil, they\u2019re looking for things that align with their lifestyle.\u201d<\/p>\n
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\t\t\t\t\tScott Maguire, Olivier Bernhard, David Allemann and Caspar Coppetti.<\/p>\n
\t\t\t\t\t\t\t\t\tCourtesy of On<\/p>\n
\n\tThe co-CEO<\/a> explained that the company is attracting what On leadership is calling \u201cthe movement class.\u201d This is described as consumers that are invested in health, food, exercise and sleep in order to experience life longer. \u201cOn fits into that moment, and I think it\u2019s a mega trend that\u2019s happening, and we\u2019re right at the center of it,\u201d he said.<\/p>\n \n\tBut despite this growth, some analysts have questioned several of the company\u2019s recent moves this year. One of which was the Swiss firm\u2019s second top leadership change in one year this past March.<\/p>\n \n\tIn the surprise announcement, On disclosed that Martin Hoffmann would step down as CEO<\/a> effective in May as part of a \u201cplanned hiatus\u201d to pursue philanthropic interests. In turn, On cofounders Allemann and Coppetti now serve as co-CEOs and Scott Maguire<\/a> will be promoted to president and chief operating officer. Hoffmann\u2019s appointment in April 2025 was intended to move On into a single-CEO structure, which ultimately lasted one year.<\/p>\n \t\t\t\t\t\t \t\t\t\t\tThe On LightSpray Cloudboom Strike 2.<\/p>\n \t\t\t\t\t\t\t\t\tCourtesy of On<\/p>\n \n\tAfter the move, some market watchers were skeptical of the CEO change and what it could signal about the overall health of the company.<\/p>\n \n\tJefferies\u2019 equity analyst Randal Konik pointed to the departure of co-CEO Marc Maurer just one year ago as a bad sign. \u201cThe departure of two CEOs in a year is notable for a company that considers itself in the first inning of growth,\u201d Konik wrote in a research note in March. \u201cWe see this as a reaction to [business] complexity rising and competitive pressure building.\u201d<\/p>\n \n\tOn the other side, Jonathan Komp, senior research analyst at Baird Equity Research, was a bit more optimistic of On\u2019s leadership changes \u2014 adding in a note at the time that Maguire taking a larger role at the company is a \u201ckey positive\u201d for On.<\/p>\n \n\t\u201cIn our interactions, we have been impressed by Maguire\u2019s executive leadership background and expertise as a product-led operator, which we believe has brought an important fresh perspective to On\u2019s executive leadership team,\u201d Komp wrote. The analyst added that Allemann and Coppetti taking on a larger role in the company is also a good thing.<\/p>\n \t\t\t\t\t\t \t\t\t\t\tLighSpray technology on display at the On Running<\/a> Summit in Paris.<\/p>\n \t\t\t\t\t\t\t\t\tCourtesy of On<\/p>\n \n\tAs for Coppetti\u2019s take on the company\u2019s leadership changes<\/a>, he said the move was \u201cabout continuity in strategy.\u201d<\/p>\n \n\t\u201cWhere you really create the value for a brand is in strategy and product, right, and there nothing has changed,\u201d the co-CEO explained. \u201cWe have the good fortune to be the founders, and we can take a very long-term view. And when you look at the whole journey of On, we\u2019ve always had a lot of discipline in the business, so pretty much every quarter since we\u2019ve been public, we reach our outlook on our targets.\u201d<\/p>\n \n\tThe leader then continued to shrug off concern from analysts. \u201cSo, how the rest of the world makes up stories of what the future will bring for the company is outside of our control,\u201d Coppetti added. \u201cIt\u2019s just all I can say. But we\u2019re all super motivated and working on building that future. The best of all is yet to come.\u201d<\/p>\n \t\t\t\t\t\t \t\t\t\t\tA still from the Run On Clouds campaign.<\/p>\n \t\t\t\t\t\t\t\t\tCourtesy of On<\/p>\n \n\tAnother analyst concern that came after the company\u2019s first-quarter earnings in May revolves around On\u2019s relationship with run specialty stores.<\/p>\n \n\t\u201cMany retailers, in many distribution channels<\/a>, where On shoes have had great success in the past, based on our checks, are displeased with how On has chosen to distribute its product, and are beginning to plan sales down,\u201d Sam Poser, equity analyst at Williams Trading, wrote in a May note. \u201cFor instance, the allocations of the Cloud 6 have been reduced at most specialty running retailers, and the CloudNova is no longer available in the specialty running channel, because On has decided that those styles are lifestyle shoes, not performance shoes, despite the history of strong full-price sell-through rates.\u201d<\/p>\n \n\tBut for Coppetti, the specialty running channel remains essential to the company\u2019s success. \u201cRunning is our roots, and just like a tree, when you want to grow, you have to take care of the roots,\u201d the co-CEO told FN. \u201cI personally spend a lot of time with our run specialty accounts, many of them over the last 15 years have become personal friends. What is changing, though, is that when you move from just a running brand to also being in other sports like tennis, you have to speak the language of those other sports and spend time with those retailers. But the run channel serves a super important function where they take care of the community. I think that\u2019s the superpower of run specialty stores.\u201d<\/p>\n \t\t\t\t\t\t \t\t\t\t\tOutside the On Running<\/a> Summit in Paris.<\/p>\n \t\t\t\t\t\t\t\t\tCourtesy of On<\/p>\n<\/p>\n<\/p>\n<\/p>\n<\/p>\n