Nike replaces its CEO with a longtime veteran and the stock is jumping

A leadership change is underway at Nike (NKE) as latest CEO John Donahoe steps down, and longtime veteran Elliott Hill takes the helm, the company said on Thursday. Shares of Nike jumped by over 7% in after-hours trading following the announcement.

Donahoe will retire on Oct. 13, with Hill, who is coming out of retirement, taking over the the subsequent day. Donahoe, who instructed the company thru the Covid-19 pandemic and the Summer season 2024 Paris Olympics, will remain as an advisor till Jan. 31, 2025.

In maintaining with his fresh function, Hill said that “Nike has always been a core part of who I am.” He stated that he is “eager to reconnect” with colleagues and “earn fresh relationships” to pressure the company forward. He expressed his dedication to bellow “intrepid, innovative merchandise” that resonate with patrons.

Mark Parker, Nike’s executive chairman, said Hill’s “leadership vogue” and “passion for sport” make him the ideal alternative to information the company’s subsequent phase of increase.

Hill previously held senior leadership roles across Europe and North America, including overseeing commercial and marketing operations for each Nike and the Jordan Brand earlier than his retirement in 2020. For the duration of his tenure, he played a key function in growing the commercial to extra than $39 billion in annual income.

Donahoe mirrored on his time at Nike and said that “it became clear now was the time to make a leadership change, and Elliott is the fair individual.”

The leadership shake-up comes as Nike seeks to regain momentum and address the transferring landscape of the athletic footwear market, which has considered increased competition from brands care for Hoka and Skechers. In June, Nike said it may well have to reassess its fiscal 2025 outlook as it braced for decrease digital increase, a decline in classic footwear trends, transferring consumer demand, and macro-financial challenges.