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Nike Chief Executive John Donahoe will retire next month in an abrupt leadership change that will cap a period of disappointing financial results for the world’s largest sportswear maker.
Nike’s board of directors said Thursday that Elliott Hill, a Nike veteran who previously served as president of consumer markets before retiring in 2020, will return to the top job effective Oct. 14.
Nike shares rose nearly 10% after the change was announced.
Donahoe, a former member of consulting firm Bain and eBay, was only the second Nike CEO in its half-century history to be hired from outside the company, and has held the role since January 2020. He was initially praised for guiding the brand through the coronavirus pandemic and accelerating its shift to direct-to-consumer sales.
But in recent months, Nike has lost market share to rivals, including startups On and Hoka, and the company cut its forecast in June, sending shares into a dramatic decline.
Donahoe, 64, said in a statement that it was now “clear that it was time for a change in leadership and that Elliott was the right person.”
In a statement, Phil Knight, Nike’s co-founder and majority shareholder, thanked Donahoe for his service to the company. Hill’s experience at the brand, he said, was “exactly what we need right now. We have a lot of work to do, but I look forward to seeing Nike get back on track.”
Nike shares fell 20% in June after the company warned that demand for its core products was slowing. It acknowledged that its strategy during the pandemic to focus on online sales, rather than the traditional mix of sales through retail and wholesale partners, had been too aggressive.
Hill, 60, is originally from Austin, Texas, and began his 32-year career at Nike as an intern before moving into sales roles and leading all sales and marketing operations for Nike and its Jordan brands.
