The boss of Nike will step down subsequent month, making method for an organization veteran to take his place because the chief of the world’s largest sportswear firm amid robust competitors within the retail sector.
In a statement, Nike mentioned John Donahoe will retire on 13 October, staying on in an advisory function till early subsequent 12 months to “guarantee a clean transition”.
Demand for the corporate’s trainers has been faltering in worldwide markets like China and the corporate’s inventory worth had slumped.
Shares rose greater than 9% in after-hours buying and selling, nevertheless, following the announcement that Elliott Hill would return to the agency.
Mr Donahoe was accountable for boosting Nike’s on-line presence, in addition to driving extra gross sales straight from prospects as a substitute of partnering with different retailers on Excessive Streets or in purchasing centres.
He joined the corporate’s board in 2014 earlier than taking up the function of chief government in 2020.
His tenure has been difficult with big shifts within the retail panorama throughout the pandemic and as inflation spiked within the following years.
The footwear agency has additionally confronted robust competitors from the likes of newer rivals like On and Hoka, which some analysts have described as being extra progressive and on-top of present traits.
Nike had been hoping that new products and a marketing campaign across the Olympic Video games in Paris would assist convey consumers again to the model.
However within the announcement on Thursday, it mentioned that the board and Mr Donahoe had “determined he’ll retire from his function”.
“It grew to become clear now was the time to make a management change,” Mr Donahoe mentioned, including that Elliott Hill is the correct particular person for the job and he was wanting ahead to seeing his future success.
His successor, Mr Hill, retired from the corporate simply 4 years in the past after serving in quite a lot of senior management roles in Europe and the US.
He mentioned he was “desperate to reconnect” with workers he had labored with up to now.
“Along with our proficient groups, I look ahead to delivering daring, progressive merchandise, that set us aside within the market and captivate customers for years to come back,” he added.
