Jakarta, IndonesiaSentinel.com — John Donahoe, who has served as Nike CEO since January 2020, will retire from his position on October 13, 2024. Elliott Hill, a long-time Nike veteran, will step in as CEO the following day.
Donahoe will remain with Nike in an advisory role until the end of January 2025. Hill, who had previously retired from Nike, returns to lead the company during a crucial period of restructuring.
“I’m thrilled to welcome Elliott back to Nike,” said Mark Parker, Nike’s Executive Chairman, in a statement to CNBC International on Friday, September 20, 2024.
“With the challenges and opportunities ahead, the Board determined through a rigorous succession process that Elliott’s global expertise, leadership style, and deep understanding of our industry and partnerships, along with his passion for sports, our brand, products, consumers, athletes, and employees, make him the right person to guide Nike’s next chapter of growth,” Parker added.
Nike is currently undergoing a broader restructuring as it shifts its focus towards direct-to-consumer sales. Critics argue that while the brand has built its in-house retail and online presence, it may have neglected innovation — the very trait that once set Nike apart in the sneaker market.
In June, when Nike reported its fourth-quarter 2023 results, the company warned that sales were expected to decline by 10% in the current quarter. Weak demand in China and inconsistent consumer trends globally have left Nike facing a much grimmer outlook than the anticipated 3.2% drop analysts had predicted.
“Leadership transitions are never easy. They test and challenge you, but this one has been handled with careful consideration and a steadfast commitment to Nike,” said Nike co-founder Phil Knight.
“As we look to the future, I’m incredibly excited to welcome Elliott back. His experience, understanding of Nike, and leadership are exactly what we need right now. We have a lot of work ahead, but I believe Nike is poised for a strong comeback,” Knight added.
In a statement, Donahoe emphasized that the time for a “leadership change” had come and expressed confidence in Hill’s abilities.
“I’m excited to see what the future holds for Nike under Elliott’s leadership,” he said.
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Hill began his career at Nike as an intern in the 1980s. In a 2020 interview, he shared that his initial interest in the company was sparked by a graduate school paper he wrote about Nike’s marketing.
Over his 32-year career with the brand, Hill worked his way up the ranks, eventually becoming president of Nike’s consumer and marketplace division, where he oversaw global commercial operations and marketing for both Nike and the Jordan Brand. Well-liked by employees, Hill retired from the company in 2020.
“Nike has always been a core part of who I am, and I’m ready to help lead it into a brighter future,” Hill said in a statement.
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“I’m eager to reconnect with many trusted employees and partners I’ve worked with over the years and excited to build new, impactful relationships that will move us forward. Together with our talented team, I look forward to delivering bold, innovative products that distinguish us in the market and captivate consumers for years to come,” Hill added.
(Ray)
