The CEO of athletic giant Nike, John Donahoe, is to step down from his role next month and will be succeeded by former senior executive Elliott Hill, the sporting goods company announced on Sept. 19.
The leadership shakeup comes amid a turbulent year for Nike, which has seen sales drop and its stock price fall while competition from its rivals remains tough.
Donahoe, who has served as president and CEO of Nike since January 2020, will retire from the roles on Oct. 13, Nike said. He will remain as an adviser to the company to ensure a “smooth transition” through Jan. 31, 2025, it noted.
Donahoe’s retirement was a mutual decision between him and the company, according to the announcement.
“It became clear now was the time to make a leadership change, and Elliott is the right person,” Donahoe said.
Hill will become president and CEO of Nike the day after Donahoe retires, the company stated. He will also become a director of Nike’s Board of Directors and a member of the Executive Committee.
Previously, Hill worked at Nike for 32 years and held senior leadership positions across Europe and North America where he helped expand the business to more than $39 billion, the company said.
Before retiring in 2020, he served as the president of Nike’s consumer and marketplace division where he led all commercial and marketing operations for Nike and Jordan Brand.
“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.
Nike Stock Tumbles on Lower Revenue Projections
Shares of Nike rose around 10 percent in late trading after the company’s announcement.
Overall, the footwear and apparel maker’s shares are down 24 percent this year to about $81 a share. Its stock took a sharp tumble in June after it lowered revenue projections for the fourth quarter of 2024 by 2 percent compared to a year prior.
Nike CFO Matthew Friend also said first quarter 2025 revenue is expected to be down by approximately 10 percent.
Friend blamed the decline on more “aggressive actions” in managing its classic footwear franchises, ongoing challenges at NIKE Digital—which includes the website and apps—and muted wholesale order books along with a softer outlook in China.
“We have been navigating several headwinds, which we now expect to have a more pronounced impact on fiscal 2025,” he said.
The company has also increasingly faced competition from rival brands including Hoka, which is owned by Deckers Brands, and On, which are attracting more consumers seeking fashionable and trendy sneakers.
As part of cost-cutting efforts and a wider plan to save $2 billion over three years, the Beaverton, Oregon-based company has laid off roughly 2 percent of its global workforce and reduced the supply of its classic shoes such as the Air Force 1.
It has also attempted to improve the supply chain to boost margins.
“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,” Hill said in Nike’s announcement.
Reuters contributed to this report.
From The Epoch Times