Nike chief executive John Donahoe to step down

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Nike chief executive John Donahoe will retire next month in an abrupt leadership change punctuating a period of dour financial performance at the world’s largest sportswear maker.

Nike’s board of directors said on Thursday that Elliott Hill, a Nike veteran who previously served as president of consumer marketplace before retiring in 2020, will return to take the top job effective October 14. 

Nike shares rose almost 10 per cent after the change was announced.

Donahoe, formerly of Bain consulting and eBay, was only the second chief executive in Nike’s half-century history to be hired from outside the company, and has served in the role since January 2020. He initially won praise for steering the brand through the coronavirus pandemic and accelerating its shift towards direct to consumer sales.

But in recent months, Nike has ceded market share to competitors including upstarts On and Hoka, and the company lowered its guidance in June, leading to a dramatic stock sell-off.

Donahoe, 64, said in a statement that “it became clear now was the time to make a leadership change, and Elliott is the right person”.

In a statement, Phil Knight, Nike’s co-founder and controlling shareholder, thanked Donahoe for his service to the company. Hill’s experience at the brand, he said, was “exactly what’s needed at this moment. We’ve got a lot of work to do but I’m looking forward to seeing Nike back on its pace.”

Shares of Nike fell 20 per cent in June after the company warned of slowing demand for its core products. It admitted that a strategy adopted during the pandemic to emphasise online sales, rather than Nike’s traditional mix of sales through brick-and-mortar retail and wholesale partners, had been too aggressive.

Hill, 60, is a native of Austin, Texas, who began his 32-year career at Nike as an intern before taking roles in sales and going on to lead all of the commercial and marketing operations for both Nike and its Jordan brands.