Nike announced Thursday that CEO John Donahoe is stepping down, and longtime employee Elliott Hill is coming out of retirement to lead the sneaker giant.
Donahue, who has been CEO of Nike since January 2020, will step down on October 13. Hill is to take over the post the next day. Donahue will stay on as a consultant until the end of January.
Shares rose 8 percent in extended trading Thursday. As of the close, shares are down more than 25 percent this year.
I’m excited to welcome Elliott back to Nike. After considering our future needs, the past performance of the business, and conducting a thoughtful succession process, the Board concluded that it is clear that Elliott’s global expertise, leadership style, and our industry And a deep understanding of partners, coupled with his passion for sports, Our brands, products, customers, athletes, and employees, make him the right person to lead the next phase of Nike’s growth,” said Nike Executive Chairman Mark Parker.
Nike is in the midst of a broader restructuring after changing its strategy of selling directly to consumers. Critics say that in Nike’s process of building sales in its stores and on its website, it lost sight of innovation and failed to produce the types of footwear the company is known for.
When it reported fiscal fourth-quarter results in late June, Nike warned that sales were expected to fall 10 percent during the current quarter, due to soft demand in China and “uneven” consumer demand around the world. ” referring to trends
The outlook was worse than the 3.2 percent decline that analysts had expected.
After the rough report, Nike had its worst trading day in history and some analysts speculated that Donahue would soon be pushed out in favor of a new CEO. At the time, Nike co-founder Phil Knight said the company stood by Donahue and that the executive had his “unwavering confidence and full support.”
But on Thursday, Knight said in a statement that he was excited to welcome Hill back to the team.
“Leadership transitions are never easy, they test you, they challenge you, but this transition has been handled with great thought and an unwavering commitment to Nike,” Knight said. said “Going forward, I couldn’t be more excited to welcome Elliott back to the team. His experience, understanding of Nike and leadership is exactly what we need right now. We have a lot of work to do but I believe Nike Looking forward to seeing it back on track.
In a statement, Donahue said “it has become clear that the time has come for a change in leadership.”
“Elliott is the right person. I look forward to seeing the future success of Nike and Elliott,” he said.
Hill, who now lives in Austin, started at Nike in the 1980s as an intern and became interested in the company after writing a paper about it for his marketing class in graduate school, an interview said. According to what he gave in 2020.
Over the course of 32 years, Hill worked in the chain before becoming president of the company’s consumer and marketplace division where he was responsible for leading all merchandising and marketing operations for Nike and Jordan Brand.
Nike has always been a core part of who I am, and I’m ready to help lead it to a brighter future,” Hill said in a statement. “I look forward to working with these many employees and trusted partners. I’m eager to reconnect with people I’ve worked with over the years, and just as excited to build new, impactful relationships that will drive us forward. Together with our talented teams, I look forward to delivering bold, innovative products that will set us apart in the market and delight consumers for years to come.
