Nike announced on Thursday (September 19) that former senior executive Elliott Hill will rejoin the company to succeed John Donahoe as President and Chief Executive Officer, as the sportswear giant strives to revitalize sales and tackle increasing competition.
According to Reuters, Nike introduced that Hill had worked at Nike for 32 years, holding senior leadership positions in Europe and North America, and had helped the company’s business grow to over $39 billion.
Hill previously served as President of Consumer Markets at Nike, overseeing all commercial and market operations of Nike and Jordan brands, and retired in 2020.
Analyst Jessica Ramirez from “Jane Hali & Associates” stated that the change in Nike’s CEO sends “a positive signal because this is someone who really understands the brand and the company”.
Following this news, Nike’s stock price rose by 9% on Thursday.
In a regulatory filing, Nike disclosed that Hill’s compensation as President and CEO will include a base salary of $1.5 million per year. Hill is set to take over as CEO from Donahoe on October 14.
Donahoe’s previous role was to strengthen Nike’s online business and drive sales through a direct-to-consumer strategy. This initially helped the company expand amid the demand for sportswear and leisurewear following the COVID-19 pandemic, leading Nike to achieve sales exceeding $50 billion in the 2023 fiscal year.
However, with consumers cutting back on discretionary spending due to fatigue from inflation and slower-than-expected rebound in the Chinese market, Nike’s sales have been under pressure since then, with growth slowing down. The London Stock Exchange Group (LSEG) predicts that Nike’s annual sales for the 2025 fiscal year will amount to $48.87 billion.
With competing brands attracting customers with more fashionable and trendier products, Nike’s lack of innovation and appealing products has also impacted the demand for Nike products in the market.