Nike boss will leave next month, allowing a firm veteran to take his place as the head of the planet’s biggest sportswear company amid tough competition in the retail sector.
Nike‘s CEO, John Donahoe, is set to retire from his role on October 13, 2024, with company veteran Elliott Hill poised to take the reins as the new leader of the world’s largest sportswear company.
Donahoe, who has led Nike since 2020, will continue in an advisory position until early next year to ensure a smooth transition in leadership.
John Donahoe’s Tenure at Nike
Donahoe played a key role in enhancing Nike’s online presence and boosting its direct-to-consumer sales. By focusing on selling directly to customers rather than relying heavily on traditional retail partnerships, Donahoe aimed to strengthen Nike’s digital strategy.
However, during his tenure, Nike faced significant challenges, particularly in international markets like China, where demand for its products slowed down. Additionally, Nike has encountered stiff competition from younger, more trend-savvy brands like On and Hoka, which have been gaining ground in the athletic footwear market.
Leadership Change and Stock Price Surge
Nike’s stock price had been under pressure in recent months due to weaker sales, but the announcement of Donahoe’s retirement and Hill’s return led to a more than 9% surge in after-hours trading.
The company is optimistic about this leadership change, with Donahoe stating that “it became clear now was the time to make a leadership change.” He also expressed confidence that Hill is the right choice to guide Nike’s future success.
Elliott Hill Returns to Lead
Elliott Hill, who retired from Nike four years ago after holding senior leadership positions in both Europe and the US, is now returning to lead the company. Hill stated that he is “eager to reconnect” with former colleagues and excited about delivering bold, innovative products that will set Nike apart in the marketplace.
His return comes as Nike hopes to reignite consumer interest with new products and a marketing campaign centered around the Paris Olympic Games.
Hill’s appointment marks a strategic move for Nike as it seeks to regain momentum in a competitive and evolving retail landscape.