Nike announced Thursday that the sportswear giant’s CEO John Donahoe will retire next month (October 14) and be replaced by Elliott Hill, a veteran former executive.
Hill will also become a director of the NIKE, Inc. board of directors and a member of the executive committee. Donahoe will remain as an advisor to the company to “ensure a smooth transition” through January 31, 2025.
CNN reports that Nike’s stock rose 9% during after-hours trading Thursday following the announcement. Nike’s stock has dropped 24% so far this year.
Per the news channel, Nike faces a consumer slowdown and tough competition from upstart running brands like Hoka and On. Customers are changing their behaviors, passing up discretionary purchases of expensive sneakers and athletic clothing for basics and experiences such as concerts and travel.
Many investors and analysts had been clamoring for changes at Nike and welcomed the CEO change.
The company’s sales were flat last quarter and the retailer predicted sales would drop another 10% next quarter as Nike’s classic brands slow down. Nike has been criticized by analysts for a lack of innovative new sneakers.
“I am excited to welcome Elliott back to Nike. Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the board concluded it was clear Elliott’s global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike’s next stage of growth,” said Mark Parker, executive chairman of NIKE, Inc. “Personally, I have worked with Elliott for more than 30 years and I look forward to supporting him and his senior management team as they seize the opportunities ahead.”
“Nike has always been a core part of who I am, and I’m ready to help lead it to an even brighter future. For 32 years, I’ve had the privilege of working with the best in the industry, helping to shape our company into the magical place it is today,” said Hill. “I’m eager to reconnect with the many employees and trusted partners I’ve worked with over the years, and just as excited to build new, impactful relationships that will move us ahead. Together with our talented teams, I look forward to delivering bold, innovative products, that set us apart in the marketplace and captivate consumers for years to come.”
Throughout the course of his career at Nike, Hill held senior leadership positions across Europe and North America and was responsible for helping grow the business to more than $39 billion. Before retiring in 2020, he was president – Consumer and Marketplace leading all commercial and marketing operations for Nike and Jordan Brand, including the P&L across the company’s four geographies. He retired from Nike in 2020.
