From CNBC: 2024-09-19 16:54:10

Nike announced CEO John Donahoe is stepping down, and Elliott Hill will take over. Donahoe, in position since Jan. 2020, retires Oct. 13. Hill will assume the role on Oct. 14. The news led to an 8% spike in Nike’s shares in extended trading Thursday. The stock has dropped over 25% this year.

The shift in leadership comes amid a restructuring at Nike focused on direct-to-consumer sales. In its latest earnings report, Nike projected a 10% sales decline due to weak demand in China and uneven global trends, worse than anticipated. The company faced criticism for lacking innovation and groundbreaking products.

Elliott Hill, a Nike veteran who started as an intern in the 1980s, returns to lead the company. An experienced leader, Hill previously oversaw all commercial and marketing operations for Nike and Jordan Brand. Known for his strong relationships with employees and partners, Hill is ready to steer Nike towards a successful future.

Founding member Phil Knight expressed support for Donahoe during a challenging period but now looks forward to Hill’s return. Donahoe stated that it was time for a leadership change and believes Hill is the right person to guide Nike going forward. The company aims to deliver innovative products and engage consumers effectively under Hill’s leadership.

The development signals a significant transition at Nike, as the sportswear giant navigates market challenges and seeks to revitalize its brand and product offerings. The leadership change underscores the company’s commitment to addressing stakeholder concerns and enhancing its competitiveness in the global market.



Read more at CNBC: Nike CEO John Donahoe is out, replaced by Elliott Hill