In a surprise move, Nike announced on September 19, 2024 that current CEO John Donahoe will be retiring after more than 5 years at the helm. The sportswear giant has tapped veteran Nike executive Elliott Hill to take over as the new President and CEO, effective October 14, 2024.
Hill is a 32-year Nike veteran who previously held senior leadership roles across Europe, North America, and was responsible for helping grow the business to over $39 billion. He was most recently the President of Nike's Consumer Marketplace, leading all commercial and market operations for the Nike and Jordan brands before retiring in 2020.
The leadership change comes as Nike faces some headwinds, with sales growth slowing and the company's annual sales expected to reach only $48.87 billion by fiscal 2025, down from over $50 billion in fiscal 2023. Factors contributing to the slowdown include inflation-weary customers cutting back on discretionary spending, a slower-than-expected rebound in China, and a lack of innovative and appealing new products compared to rising competitors like On and Hoka.
Analysts have largely welcomed the move, seeing Hill's deep experience and familiarity with the Nike brand as a positive signal. "Elliott is the best possible person for the job and to help get Nike back to winning again," said Chris Yen, owner of Laundry, a clothing store in Portland, Oregon that sells vintage sports apparel. "He has a long history of innovation and being successful as a leader there at Nike."
Hill's background leading the highly profitable Jordan brand could also help Nike regain some momentum in that key segment, after concerns arose in 2023 that the Jordan brand was losing some of its luster on the resale market.
The leadership shakeup also comes after billionaire investor William Ackman's Pershing Square Capital Management recently disclosed a sizable stake in Nike, owning 16.3 million shares. Ackman has not publicly commented on the changes, but his involvement likely increased pressure for a change at the top.
With Hill's deep knowledge of the Nike brand and business, the company is hoping he can help navigate the current challenges and put the sportswear giant back on a path to stronger, more consistent growth. Investors will be closely watching to see what strategic shifts, if any, Hill implements in the coming months.
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