Nike CEO John Donahoe to step down, Elliott Hill takes over amid retail challenges
Nike announced that CEO John Donahoe will retire on 13 October, making way for company veteran Elliott Hill to assume leadership of the world’s largest sportswear brand. Donahoe will remain in an advisory role until early next year to facilitate a smooth transition.
The decision comes as Nike grapples with declining demand for its footwear in key international markets, including China, and a significant drop in its stock price.
Following the announcement, shares rose more than 9% in after-hours trading, reflecting optimism about Hill’s return to the company.
During his tenure, Donahoe focused on enhancing Nike’s online presence and increasing direct-to-consumer sales, moving away from traditional retail partnerships.
He joined Nike’s board in 2014 and became CEO in 2020, navigating the challenges of the pandemic and rising inflation.
Despite these efforts, Nike faces intense competition from newer brands like On and Hoka, which some analysts consider more innovative and in tune with current trends.
The company had hoped that new products and an Olympic Games marketing campaign in Paris would revitalize consumer interest.
In his statement, Donahoe acknowledged the need for a leadership change, expressing confidence in Hill’s capabilities.
Hill, who retired from Nike four years ago after holding several senior roles in Europe and the US, expressed eagerness to reconnect with former colleagues and drive the company forward.
He emphasized his commitment to delivering innovative products that differentiate Nike in the marketplace and engage consumers.
