Beaverton: Nike has announced that CEO John Donahoe will step down on October 13, with company veteran Elliott Hill coming out of retirement to take the helm. Donahoe, who has been CEO since 2020, will remain as an advisor until January. Hill, a Nike insider with over 30 years of experience, had previously served as president of the consumer and marketplace division before retiring in 2020.
Hill expressed his excitement about rejoining Nike, emphasising his commitment to leading the company towards a brighter future. He is expected to focus on rebuilding the company's culture, which has faced challenges in recent years.
Under Donahoe's leadership, Nike's sales grew from 39.1 billion dollars in 2019 to 51.4 billion dollars in 2024, with a focus on expanding its e-commerce and direct-to-consumer strategy. However, the company's aggressive move away from wholesale partners opened the door for competitors like On Running and Hoka to gain market share. Nike recently admitted it had gone too far with this shift and has been working to fix the issue.
The company is currently undergoing a 2 billion dollars restructuring plan, including cutting 1,500 jobs to refocus on growth areas like the women's category and the Jordan brand. Hill's appointment is seen as a positive step toward stabilising Nike and boosting morale within the company.
Nike shares rose 8 percent following the announcement, though the stock remains down over 25 percent this year.
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