Nike replaces John Donahoe with the new CEO, Elliott Hill, who has a long history with Nike.
Hill joined Nike in 1988 and has served as the President of Consumer Marketplace before retiring in 2020. Previously, Nike’s shares has been falling with decreasing sales and increased competition from brands such as On and Hoka. Calls for a change in leadership was not sudden. During Donahoe leadership, he planned for $2 billion in cost reductions with 2% layoffs across Nike last year, and analysts have forecasted in June that sales for the new fiscal year would be below expectations. With the new leadership change, Nike’s shares increased by 7.3%, the day following the announcement of the new CEO.