Nike CEO John Donahoe. Image: JONAS ROOSENS/Belga/AFP (Getty Images)
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A management modification is underway at Nike (NKE) as existing CEO John Donahoe actions down, and long time veteran Elliott Hill takes the helm, the business stated on Thursday. Shares of Nike leapt by over 7% in after-hours trading following the statement.
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Donahoe will retire on Oct. 13, with Hill, who is coming out of retirement, taking control of the next day. Donahoe, who guided the business through the Covid-19 pandemic and the Summer 2024 Paris Olympics, will stay as a consultant till Jan. 31, 2025.
In reaction to his brand-new function, Hill stated that “Nike has actually constantly been a core part of who I am.” He mentioned that he is “excited to reconnect” with associates and “construct brand-new relationships” to drive the business forward. He revealed his dedication to provide “strong, ingenious items” that resonate with customers.
Mark Parker, Nike’s executive chairman, stated Hill’s “management design” and “enthusiasm for sport” make him the perfect option to direct the business’s next stage of development.
Hill formerly held senior management functions throughout Europe and North America, consisting of supervising business and marketing operations for both Nike and the Jordan Brand before his retirement in 2020. Throughout his period, he played a crucial function in growing business to more than $39 billion in yearly income.
Donahoe assessed his time at Nike and stated that “it ended up being clear now was the time to make a management modification, and Elliott is the ideal individual.”
The management shake-up comes as Nike looks for to restore momentum and deal with the moving landscape of the athletic shoes market, which has actually seen increased competitors from brand names like Hoka and Skechers. In June, Nike stated it would require to reassess its financial 2025 outlook as it braced for lower digital development, a decrease in timeless shoes patterns, moving customer need, and macro-economic obstacles.