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A major shuffle is happening at the top of Nike: CEO John Donahoe is stepping down and will retire from his position as well as Nike’s board of directors, the company said on Thursday. He’ll be replaced by Elliott Hill, a former Nike executive who retired in 2020 after 32 years with the company. The change is effective 13 October, though Donahoe will stay on as an advisor to the board through January. Nike shares jumped more than 8 per cent in after hours trading upon the announcement.
“It’s been an honour and privilege to be part of this incredible company, and I’ll always value my time at Nike and the opportunity to lead the organisation. I have great respect for [founder] Phil [Knight], [executive chairman and former CEO] Mark [Parker], Nike and its employees,” Donahoe said in a statement. “It became clear now was the time to make a leadership change, and Elliott is the right person. I look forward to seeing Nike and Elliott’s future successes.”
Nike, once an unflappable leader in the sportswear industry, has suffered setbacks in recent quarters under Donahoe after missing expectations last September for the first time in two years. Sales fell 2 per cent in the fourth quarter of 2024, the company announced at the end of June, to $12.6 billion. Full year revenues rose 1 per cent, to $51.4 billion.
Donahoe joined Nike in January 2020 — just before the onset of the Covid-19 pandemic — from a career mostly spent in tech. He served as CEO of Ebay from 2008 to 2015 and software company Servicenow, as well as management consulting firm Bain Company. During his tenure, Nike navigated a series of layoffs that also saw the departure of several executives. That included tech leadership, pulled back as part of a $2 billion savings plan introduced in December 2023 — two years after the company acquired virtual collectibles brand Rtfkt. Donahoe also oversaw a significant shift away from wholesale, with focus on direct channels and a suite of apps. But this ended up doing more harm than good, as direct-to-consumer sales failed to make up for the losses from previous wholesale partners.
At the same time, competition has increased as critics claimed Nike’s product innovations and creative lagged. Smaller challenger brands from Hoka to On, while tiny in comparison to the Nike behemoth, chiselled at its market share, as New Balance and Adidas showed strength. A slew of speciality brands in the sportswear space, from Alo Yoga to Lululemon and Vuori also diverted customers’ — especially women’s — attention away from the brand.
Hill will now be tasked with getting Nike back on track. Hill most recently held the role of president, consumer and marketplace, before retiring. It won’t be easy — shares are down 24 per cent this year, and Nike lowered its guidance for fiscal 2025.
“I’m eager to reconnect with the many employees and trusted partners I’ve worked with over the years, and just as excited to build new, impactful relationships that will move us ahead,” Hill said in a statement. “Together with our talented teams, I look forward to delivering bold, innovative products that set us apart in the marketplace and captivate consumers for years to come.”
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