Nike Appoints Company Veteran Elliott Hill as New CEO; John Donahoe to retire

By Juveria Tabassum

(Reuters) – Nike said on Thursday that former chief executive Elliott Hill will join the company to succeed John Donahoe as chairman and CEO, as the sportswear giant shakes up its top ranks amid efforts to revive sales and to fight the growing competition.

The company’s shares rose 9 percent in extended trading.

Hill was at Nike for 32 years and held senior positions in Europe and North America and was responsible for growing the business to more than $39 billion, the company said.

Hill previously served as President, Consumer Market at Nike, leading all commercial and market operations for Nike and Jordan Brand, before retiring in 2020.

Nike said in a regulatory filing that Hill’s compensation as chairman and CEO will include an annual base salary of $1.5 million. Hill will take over as CEO on October 14.

The CEO change “sends a positive signal because it’s someone who knows the brand and knows the company very well,” said Jane Hali & Associates analyst Jessica Ramirez.

Donahoe was tasked with strengthening Nike’s online presence and driving sales through direct-to-consumer channels.

The push initially helped the company grow demand for sports in the wake of the pandemic, so Nike reached annual sales of more than $50 billion in fiscal 2023 for the first time.

However, sales have been under pressure and growth has slowed, with LSEG expecting Nike’s annual sales of $48.87 billion for fiscal 2025 as inflation-weary customers cut discretionary spending and a slower recovery than expected in China’s growing market.

A lack of innovative and eye-catching products has also fueled demand for Nike as rival brands including Roger Federer-backed On and Deckers’ Hoka attract customers with their trendier and more fashionable products.

Expectations for a change at the top were heightened after billionaire investor William Ackman disclosed a stake in Nike. Ackman did not comment on his plans for the company.

(Additional reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila, Krishna Chandra Eluri and Shounak Dasgupta)