Nike in rally after the announcement of cultural, on guard: the CEO John Donahoe steps down the helm and the veteran Elliot Hill is being called out of retirement to lead the company. Hill will assume the role of president and CEO starting from 14 October and will also become a director of the board and a member of the executive committee. Donahoe, 64, will retire on Oct. 13, but will remain an advisor until Jan. 31, 2025, to ensure a smooth transition.
Le Nike stock have jumped by more than 9% in After-hours trading on Wall Street, a positive reception, especially after a 24% decline this year and in today's pre-market they are gaining almost 7%. The American sportswear giant has been struggling against the sales drop and the growing competition from emerging brands like On and Hoka, as well as established rivals like Adidas. In the face of these challenges, the company announced a $2 billion cost-cutting plan, which includes layoffs of 2% of its workforce. The new leadership announcement also comes days before the company is set to report its first-quarter 2024/25 financial results on October XNUMX.
Elliott Hill Returns to Nike to Lead Recovery
Elliott Hill boasts a long career at Nike, which began in 1988. He has held key roles across multiple geographies, including president of the consumer and marketplace divisions for the Nike and Jordan brands. Before going Retired in 2020, Hill has amassed a wealth of experience that the board believes is critical to leading the company’s next phase of growth. Over the past four years, he has served on multiple boards and founded Open Road Resources, a venture dedicated to driving innovation in the industry.
Former eBay CEO Donahoe has sought to shore up Nike in the post-Covid era, but has come under fire from shareholders in recent months over the loss of momentum at the sports giant. A lawsuit was filed last spring by shareholders dissatisfied with the company's performance.
Comments
Hill expressed his excitement about his new role, saying, “Nike has always been at the heart of who I am, and I am ready to help lead it to an even brighter future. I have had the privilege of working with the best in the industry and I look forward to reconnecting with our many trusted employees and partners.”
Hill emphasized his intention to build new relationships and offer bold, innovative products that will captivate consumers for years to come.
Mark Parker, Nike's executive chairman, said: “After a thoughtful succession process, the Board concluded that Elliott's experience and passion for our industry make him the right person for this next phase.”
