Nike has brought back former long-time executive Elliott Hill as president and CEO in a significant leadership shake-up aimed at revitalizing the company. Hill replaces John Donahoe, who has “decided” to retire after four challenging years that saw stagnating sales and increased competition eroding Nike’s market share. Hill will officially take the helm on October 14, while Donahoe will remain as an advisor until January, as announced by Nike on Thursday.
Joining Nike as a sales intern in 1988, Hill advanced through the ranks, holding presidential roles overseeing commercial and marketing operations in North America and Europe, as well as the Jordan Brand globally, before retiring in 2020.
“After a thoughtful succession process, the board determined that Elliott’s global expertise, leadership style, and deep industry knowledge, combined with his passion for sport, make him the ideal leader for Nike’s next phase of growth,” said Mark Parker, Nike’s executive chairman.
Nike maintains key sponsorships with numerous professional leagues and teams and is a dominant force in the footwear sector, with popular lines like Air Max, Air Force 1, and Air Jordan firmly established in fashion and culture.
During Donahoe’s tenure, he focused on enhancing Nike’s sales channels, particularly online and direct-to-consumer strategies. This approach initially succeeded during the COVID-19 pandemic, leading to Nike’s annual sales surpassing $50 billion for the first time in 2023. However, changing consumer preferences toward more affordable brands have negatively impacted Nike, allowing competitors like adidas, New Balance, and newer brands such as Hoka and On, backed by Roger Federer, to gain ground.
Investor sentiment has been affected by weak sales forecasts and digital performance, with Nike’s stock down about 20% since Donahoe took over in January 2020, although it rose approximately 9% in after-hours trading following the leadership announcement.
Additionally, Nike has faced challenges in China, one of its largest markets, where slowing economic growth has led to reduced spending on non-essential items. Critics have pointed to a lack of innovation and variety in Nike’s product offerings, with the company reporting flat sales in its most recent fiscal quarter and projecting a further decline of about 10% in the next three months.
Additionally, Nike has faced challenges in China, one of its largest markets, where slowing economic growth has led to reduced spending on non-essential items. Critics have pointed to a lack of innovation and variety in Nike’s product offerings, with the company reporting flat sales in its most recent fiscal quarter and projecting a further decline of about 10% in the next three months.
In line with its cost-saving measures, Nike announced plans to cut 740 jobs at its Oregon headquarters in April, marking the second phase of a 2% workforce reduction initiated in February as part of a $2 billion cost-saving strategy.
