Nike announced that its CEO, John Donahoe, will step down next month, paving the way for the return of company veteran Elliott Hill to take the helm of the world’s largest sportswear brand. Donahoe will officially retire on October 13, though he will remain in an advisory capacity until early 2024 to ensure a smooth leadership transition.
The announcement comes as Nike faces increased competition and struggles with faltering demand in key markets like China. While the company’s stock had recently slumped, the news of Hill’s return led to a 9% jump in after-hours trading.
Donahoe, who joined Nike’s board in 2014 and became CEO in 2020, played a key role in expanding the brand’s online presence and shifting sales directly to consumers rather than relying on third-party retailers. His tenure was marked by challenges brought on by the pandemic and rising inflation, as well as intensified competition from emerging rivals such as On and Hoka, which have been seen as more innovative.
Nike had hoped that new product launches and its marketing campaign for the upcoming Olympic Games in Paris would boost sales. However, the company and Donahoe mutually agreed that now was the time for a leadership change. “It became clear this was the right moment,” Donahoe said, adding that he believes Hill is well-suited to lead Nike into the future.
Elliott Hill, who retired from Nike four years ago after holding key leadership roles in Europe and the U.S., expressed excitement about returning. “I’m eager to reconnect with the team and deliver bold, innovative products that will continue to captivate consumers,” Hill said in a statement.
