Nike replaces ceo Donahoe with retired executive in relaunch attempt

Top management replacement at Nike. The sportswear giant has ousted CEO John Donahoe, recalling long-time executive Elliott Hill from retirement in a bid to return the struggling brand to its glory days. Hill, 60, joined Nike in 1988 and served as president of the consumer and marketplace business before retiring in 2020. He will take up the post on 14 October. Donahoe, 64, will retire and remain a consultant until January.

Nike shares jumped more than 7% in after-hours trading on Wall Street. The stock has tumbled 25 per cent this year as the trainer giant struggles with sales slump and customer defections to emerging sports brands such as On and Hoka, as well as established rivals such as Adidas. Donahoe, former head of eBay Inc. and a consultant at Bain & Co. who took over in 2020, was largely the face of the fall. "We are all aware that we have faced challenges over the past year, but our foundation remains extremely solid," Executive Chairman Mark Parker said in a note to employees on Thursday. "Now more than ever, we must come together to accelerate and realise our potential to build Nike's future growth."

The decision to bring a long-time executive to the helm, rather than tapping another outsider less immersed in Nike's culture, signals the company's attempt to reverse the sales slump that has damaged the company's stock, employee morale and the brand's global prestige.

In a message to staff after the announcement, Hill said he knew "things have not been easy" and urged employees to unite as a team and act with a sense of urgency, saying the company must both deliver results now and prepare for future success.

Within the company, there were signs of enthusiasm: some employees celebrated the news of the change of CEO with bottles of prosecco scattered around the office, according to Bloomberg News.