Nike’s Chief Executive, John Donahoe, is set to retire next month in a sudden leadership shift following a period of lackluster financial performance for the world’s largest sportswear manufacturer.
Nike’s board of directors announced on Thursday that Elliott Hill, a veteran of the company who previously served as President of Consumer Marketplace until his retirement in 2020, will return to assume the role of CEO effective October 14. Following the announcement, Nike’s shares increased by nearly 10 percent.
Donahoe, who previously held positions at Bain consulting and eBay, became only the second external chief executive in Nike’s fifty-year history when he took on the role in January 2020. He was initially praised for guiding the brand through the COVID-19 pandemic and accelerating its shift toward direct-to-consumer sales.
Recently, however, Nike has been losing market share to competitors like On and Hoka, and the company lowered its financial guidance in June, which led to a significant stock sell-off.
Donahoe, 64, stated that “it became clear now was the time to make a leadership change, and Elliott is the right person.”
Phil Knight, Nike’s co-founder and controlling shareholder, expressed gratitude for Donahoe’s service. In a statement, Knight said Hill’s experience with the brand is “exactly what’s needed at this moment.” He added, “We’ve got a lot of work to do but I’m looking forward to seeing Nike back on its pace.”
Nike shares fell by 20 percent in June after the company cautioned about slowing demand for its core products. The company acknowledged that the strategy adopted during the pandemic—emphasizing online sales over the traditional mix of brick-and-mortar retail and wholesale partners—had been overly aggressive.
Elliott Hill, 60, originally from Austin, Texas, began his 32-year tenure at Nike as an intern. He has since held various roles in sales and eventually led all commercial and marketing operations for both Nike and its Jordan brands.
