( Source- businessoffashion.com )
Nike appoints new CEO on Thursday, boosting its stock by nearly 10% in after-hours trading as the company aims to reverse slowing sales growth amid increasing competition in the athletic footwear market.
Elliott Hill Returns as CEO
Former Nike executive Elliott Hill will return as CEO and president on October 14, taking over from current CEO John Donahoe, who is set to retire on October 13. Donahoe will remain with the company as an adviser until January 2025. Hill, who retired in 2020, previously served as president of Nike’s consumer and marketplace business, overseeing both commercial and marketing operations for Nike and the Jordan brand.
In a statement, Nike’s executive chairman, Mark Parker, praised Hill’s leadership and industry expertise, stating, “Elliott’s global experience, leadership style, and deep understanding of our industry, partners, and consumers make him the right person to lead Nike’s next stage of growth.”
Challenges and Opportunities Ahead
Nike’s leadership change comes at a critical time for the company, as its stock has fallen more than 25% this year due to slowing revenue growth. Concerns have also been raised about Nike’s pivot toward direct-to-consumer sales. The company’s fiscal fourth-quarter report showed a 2% decline in revenue, missing Wall Street’s expectations, while direct-to-consumer sales dropped 8% compared to the same period last year.
However, Nike’s earnings per share of $0.99 exceeded analyst expectations of $0.66, providing some optimism. Aneesha Sherman, a senior analyst at Bernstein, expressed confidence in Hill’s return, calling it “very good news for the stock.” She noted Hill’s extensive experience, having worked at Nike for 32 years, and his strong knowledge of the company’s products and operations.
Increased Competition in the Athletic Footwear Market
Nike CEO John Donahoe stepping down, Elliott Hill named new CEO
Nike faces stiff competition from both established and emerging rivals, including Adidas and newer brands like On and Deckers’ Hoka. As Nike works to fend off this competition, Wall Street has been closely watching its product pipeline for signs of innovation and growth potential.
Nike appoints new CEO, Elliott Hill, as the company aims to regain its momentum, navigate an increasingly competitive market, and continue building on its direct-to-consumer strategies. The leadership transition represents a critical moment in the company’s ongoing effort to remain a dominant force in the athletic wear industry.
