By James Myers, OAN Staff
Thursday, September 19, 2024 3:22 PM
Sports brand Nike said on Thursday that Chief Executive Officer John Donahoe will step down after more than five years at the helm, as the brand struggles recently with sales and other competitive challenges.
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The Oregon-based company has appointed Elliot Hill as president and chief executive officer, effective Oct. 14, 2024.
But shares rose 9% in extended trading on Thursday.
Donahoe was responsible for expanding Nike's presence and growing sales through its direct-to-consumer channel.
Hill spent 32 years at Nike, holding senior management positions in Europe and North America and helping to grow the business to more than $39 billion, according to the company.
The leadership change comes as LSEG's forecast for Nike's annual sales of $48.87 billion for 2025 has slowed after sales subsequently came under criticism and global inflation led customers to cut back on spending.
Experts also blame Nike's lack of compelling, innovative products for its sales decline, while its competitors have been able to attract customers with trendier items.
And a change in leadership was expected after billionaire investor William Ackman revealed he owned a stake in the sports brand, though he has not said what his plans are for the company.
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