Nike CEO John Donahoe is set to step down from his position next month, with former senior executive Elliott Hill taking over as the new president and CEO. This leadership change comes at a challenging time for Nike, as the company has experienced declining sales and a falling stock price, while facing tough competition from rivals. Donahoe, who has been with Nike since January 2020, will retire on October 13 but will continue to serve as an advisor until January 2025 to ensure a smooth transition.
The decision for Donahoe’s retirement was a mutual one between him and the company, according to the announcement. Donahoe expressed that it was clear now was the time for a leadership change, and he believes Hill is the right person for the job. Hill, who has worked at Nike for 32 years, has held senior leadership positions in Europe and North America, contributing to the company’s growth to over $39 billion.
Before his retirement in 2020, Hill served as the president of Nike’s consumer and marketplace division, overseeing commercial and marketing operations for Nike and Jordan Brand. Mark Parker, the executive chairman of Nike, Inc., stated that Hill’s global expertise, leadership style, industry knowledge, and passion for sport make him the ideal candidate to lead Nike’s next phase of growth.
Following the announcement, Nike’s stock rose by around 10 percent in late trading. However, the company’s shares have still declined by 24 percent this year, currently standing at approximately $81 per share. In June, Nike lowered its revenue projections for the fourth quarter of 2024 by 2 percent compared to the previous year, causing a significant drop in stock price. Furthermore, the company’s CFO, Matthew Friend, expects a 10 percent decrease in first-quarter 2025 revenue.
Friend attributed these declines to various factors, including aggressive actions taken in managing the classic footwear franchises, ongoing challenges with NIKE Digital, and a softer outlook in China. Nike has also faced increased competition from brands like Hoka and On, which are gaining popularity among consumers seeking fashionable and trendy sneakers. To address these challenges, Nike has implemented cost-cutting measures and plans to save $2 billion over three years. This includes laying off around 2 percent of its global workforce and reducing the supply of classic shoes like the Air Force 1. The company is also working on improving its supply chain to enhance margins.
In response to his new role, Hill expressed his excitement to deliver bold and innovative products that will set Nike apart in the marketplace and captivate consumers for years to come. With his extensive experience and understanding of the industry, Hill is well-positioned to lead Nike’s growth strategy.
In conclusion, Nike’s CEO John Donahoe will retire next month, making way for former senior executive Elliott Hill to take over. This leadership change comes at a challenging time for Nike, as the company faces declining sales, a falling stock price, and strong competition. However, with Hill’s expertise and passion for the sport, Nike hopes to navigate these challenges and continue its growth trajectory.
