Elliott Hill’s Coming Back at Nike to Replace John Donahoe in the Role of CEO

Nike is preparing for a significant leadership transition as John Donahoe, its current CEO, is set to retire next month, the company revealed on Thursday. This move adds to the series of changes for the sportswear giant during a period of slowing sales.

Although Donahoe will officially step down from his role on October 13, he will continue serving as an advisor until the end of January, according to a company statement. Elliott Hill, a former Nike executive who left the company in 2020, will take over as CEO.

This leadership change occurs when Nike is navigating tough financial terrain. The company’s latest quarterly report shows revenue of $51.4 billion, marking a 2 percent decline from the previous year and the slowest annual sales growth in Nike’s six-decade history, based on filings with the SEC. The stock has suffered as well, dropping by 24 percent so far this year.

Despite these challenges, Nike’s shares experienced a modest 0.1 percent increase on Thursday, closing at $80.98, and saw further gains in after-hours trading following the leadership announcement.

Nike has struggled to maintain its sales momentum, grappling with growing competition from brands like Hoka and New Balance, along with reduced consumer spending in the U.S. To counteract these headwinds, the company announced a cost-cutting strategy in December that includes plans to reduce its workforce by up to 2 percent.

Market analysts have pointed to Nike’s shift in retail strategy as a potential factor in its recent difficulties. The company’s decision to emphasize direct-to-consumer sales—through its stores and online platform—has come at the expense of wholesale channels. While Nike saw a 5 percent increase in wholesale revenue last quarter, its direct-to-consumer sales dropped 8 percent compared to the previous year.

Elliott Hill’s return comes after holding senior positions overseeing both European and North American markets, where he played a key role in driving Nike’s business to exceed $39 billion. Prior to his departure in 2020, he was serving as the company’s president of consumer and marketplace.

Nike has also turned to another former leader for assistance this year. In July, Tom Peddie, who spent three decades at the company, was rehired to strengthen partnerships with shoe retailers. Peddie, who retired in 2020, has rejoined the team as vice president of marketplace partners to help the brand recover in this challenging environment.

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