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John Donahoe, CEO of Nike, the world’s largest sportswear maker, is set to step down next month, in a sudden leadership shakeup that ends a period of poor performance for the company.
Nike’s board of directors announced Thursday that Elliot Hill, a Nike veteran who served as president of consumer marketplace until his retirement in 2020, will return as chief executive, effective Oct. 14.
Nike shares rose nearly 10 percent after the changes were announced.
Donahoe, who has worked at Bain Consulting and eBay, is only the second CEO to be hired from outside Nike in its half-century history, having held the role since January 2020. He was initially praised for guiding the brand through the COVID-19 pandemic and accelerating its shift to direct-to-consumer selling.
But in recent months, Nike’s shares have plummeted after the company ceded market share to rivals such as upstarts On and Hoka, and in June it cut its earnings outlook.
“It is clear that now is the time for a leadership transition and Elliott is the right person for the job,” Donahoe, 64, said in a statement.
In a statement, Nike co-founder and controlling shareholder Phil Knight thanked Donahoe for his contributions to the company, calling Hill’s experience at Nike “exactly what we need right now. There’s a lot of work to do, but I look forward to getting Nike back on track.”
Nike shares fell 20% in June after the company warned of slowing demand for its flagship products and acknowledged that it had been too aggressive in its strategy during the pandemic to emphasize online sales instead of a traditional mix of brick-and-mortar stores and sales through wholesale partners.
Hill, 60, a native of Austin, Texas, began his 32-year career at Nike as an intern and then moved into sales roles, leading all commercial and marketing operations for both Nike and Jordan Brand.
