Nike’s CEO, John Donahoe, is set to retire next month, paving the way for company veteran Elliott Hill to take the helm of the world’s largest sportswear brand amidst increasing competition in the retail sector.
In a statement, Nike announced that Donahoe will step down on October 13 but will continue in an advisory role until early next year to facilitate a seamless transition.
Nike has faced challenges recently, with declining demand for its products in key international markets like China and a drop in its stock price.
Following the announcement of Hill’s return, shares surged more than 9% in after-hours trading.
Donahoe, who joined Nike’s board in 2014 and became CEO in 2020, focused on enhancing the company’s online presence and increasing direct sales to customers rather than relying on third-party retailers.
His tenure has been marked by significant changes in the retail landscape due to the pandemic and subsequent inflation pressures.
Nike has also encountered stiff competition from emerging brands like On and Hoka, which analysts note have been more innovative and attuned to current market trends.
The company had anticipated that new product launches and a marketing push linked to the upcoming Olympic Games in Paris would revive consumer interest.
However, the board and Donahoe mutually agreed that it was time for a leadership change.
“It became clear now was the time to make a leadership change,” Donahoe stated, expressing confidence in Hill’s capabilities and eagerness to witness his future achievements.
Hill, who retired from Nike four years ago after holding various senior leadership roles in both Europe and the U.S., expressed enthusiasm about reconnecting with former colleagues.
“Together with our talented teams, I look forward to delivering bold, innovative products that will distinguish us in the marketplace and engage consumers for years to come,” he said.
