Sitting of their Zurich headquarters, On’s sanguine co-CEO, Martin Hoffmann, and his colleague and On co-founder Caspar Coppetti, have purpose to be relaxed. One other quarter of surprising progress has notched one other $3 billion to their model’s worth.
There may be an elephant within the room, nonetheless. It’s not taking on a lot room although, given the elephant is a newly-empty seat on the CEO desk.
Hoffmann will quickly tackle the function of On’s CEO alone when his co-CEO Mark Maurer leaves the corporate in June. Maurer stated he deliberate to embark on a “new chapter” in his skilled life after greater than 14 years on the firm.
Maurer and Hoffmann each joined On from Swiss meals retailer Valora in 2012 and 2013, respectively, as COO and CFO, with Maurer wooing his pal over to what was then a little-known operating startup. The pair has operated as co-CEOs since 2021.
From July, although, Hoffmann, a monetary whizz by commerce and by nature, will take the reins of On alone, with out Maurer to lean on.
“I had a really strong relationship with Mark and a deep, deep friendship,” Hoffmann advised Fortune following the discharge of On’s first-quarter earnings.
“I will miss that, but we have been super close, basically in all parts of the business, together with different focuses. But there are no blind spots, and we are not changing strategy.”
Hoffmann, whose precedence will shift from his present twin function as CFO, admits he loves numbers as a lot as he does folks. For a corporation higher recognized for design, innovation, and funky collaborations with Gen Z idols, finance might want to take a backseat.
“The strength of On is not the numbers, it’s the team,” stated Hoffmann.
“My goal was to enable this team to be at their best. And I don’t think this changes. The focus from where I do it will change, but the perspective stays the same.”
Hoffmann may hardly take sole cost of On in a greater place.
On Tuesday, the group reported a 43% surge in income within the first quarter of 2025 in contrast with a 12 months earlier, whereas it elevated its income and profitability steering for the remainder of the 12 months.
The final quarter marked the second in a row that On beat its income expectations.
New model partnerships, together with a February Tremendous Bowl commercial that includes tennis nice and On investor, Roger Federer, and Elmo, have helped the corporate defy short-run expectations inside a wider aim of doubling gross sales between 2023 and 2026.
On wrapped up its earnings week by hitting a report valuation of $19.65 billion as traders piled into the operating model within the wake of the shock outcomes, having began the week valued at round $16 billion. On is now the third Most worthy publicly traded footwear model on this planet behind Nike and Adidas.
The group’s surge has come as these legacy sportswear firms have regressed. Shares in Nike have plunged greater than 15% because the begin of the 12 months, whereas Adidas shares have fallen greater than 8%. On, in the meantime, has risen in worth by 8% this 12 months. With a present operating shoe market share of round 10%, the corporate’s management is laser-focused on driving this even larger.
“Our long-term vision is to be the number one brand in running,” Coppetti advised Fortune.
On’s advertising and marketing
Attending to the mantle of the primary operating model actually appears to be like much more sensible now than when its co-founders first began experimenting with strapping hose pipes to the underside of conventional trainers. It’s, nonetheless, a distinct path from the one which introduced On thus far.
On developed as a challenger model largely by way of word-of-mouth advertising and marketing and an opportunistic growth in operating amongst youthful folks, whose larger disposable earnings, social media consciousness, and newfound concentrate on health have proved a goldmine for the athletic model.
“I think we’re benefiting from this health and wellness trend where younger adults… they’re going to the gym rather than going to the bar,” stated Coppetti. The group’s profitable partnership with Zendaya hasn’t harm its enchantment with younger prospects both.
“We’re quite obsessed,” Coppetti says about persevering with to boost On’s model recognition.
The corporate has been forensic in transitioning from an internet mannequin to erecting bodily shops, contemplating precisely the place to put every of its 53 shops, proper all the way down to the road nook, to keep up its exclusivity whereas rising.
“We don’t want to overshoot, and that allows us to, for example, be very selective with retail partners we want to work with, or which stores we want to be in, which street, which corner of that street we want to have our store on and it all feeds into this premium positioning,” says Coppetti.
On’s two London shops exemplify that technique, with one situated on the unique Regent’s Road, and the opposite within the stylish east-side purchasing zone of Spitalfields. Coppetti notes some 200 folks participate in a run membership from that retailer frequently. You will be fairly assured that an On rep will make an undercover look at different run golf equipment, too.
“We actually go out and we go to the major running routes in the big cities, and we go and count people, and we see what products they are wearing, both footwear and apparel,” Coppetti stated.
The corporate does the identical at operating occasions. On will get extra reduce by way of amongst brief distance runners, as much as half marathon distances. It’s hoping to seize extra marathon runners when it launches its “super shoes” later this 12 months.
There will probably be different challenges alongside the way in which. Nonetheless a nascent model, On hasn’t but proved it could actually journey out demand dips and transfer past fears that it’s a “fad” shoe. And regardless of having operations within the U.S., the Swiss model is not any much less uncovered to tariffs than its opponents. Nonetheless, On is planning value will increase this 12 months, unrelated to tariffs, and CEO Hoffmann prospects are prepared to remain on the journey, nonetheless bumpy issues get.
“We want to be the most premium global sports brand, and premium is the decisive word here,” Hoffmann says. “And if you are clear about the North Star, we actually have clear direction in kinds of uncertainties like this.”
This story was initially featured on Fortune.com
