OAN Staff James Meyers
3:22 PM – Thursday, September 19, 2024
Sports Brand Nike announced on Thursday, that CEO John Donahoe will retire after more than five years of being in charge of the company as the brand has struggled recently with sales and other competition.
The Oregon based company named Elliot Hill president and chief executive officer, taking effect on October 14, 2024.
However, shares were up 9% in extended trading on Thursday.
Donahoe was given the responsibilities of increasing Nike’s presence and driving sales through direct-to-consumer channels.
Hill was at Nike for 32 years and held senior leadership positions across Europe and North America and was a major factor in helping grow the business to over $39 billion, according to the company.
The change in leadership comes as sales have since come under fire and growth has slowed LSEG expectations of Nike’s annual sales at $48.87 billion for fiscal 2025 as customers have cut back on consumer spending due to inflation across the globe.
Experts also blame the sales drop due to Nike’s lack of appealing and innovative products, while rivals have been able to attract customers with more trendy products.
Additionally, changes at the top were expected after billionaire-investor William Ackman disclosed a stake in the sports brand. Ackman has not spoken on his plans for the company.
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