Nike Inc. has announced the appointment of Elliott Hill as its new president and CEO, succeeding John Donahoe who is set to retire next month. Hill, who previously held leadership roles at the company before retiring in 2020, brings a wealth of experience from his tenure across Europe and North America, including serving as the president of consumer and marketplace operations for Nike and the Jordan brand.
The decision comes at a crucial time for Nike as the company has faced recent challenges, with a 2% revenue decline reported in its most recent quarter ending on May 31. This decline has contributed to a 24% decrease in the company's stock value year-to-date. Despite these setbacks, Donahoe emphasized the company's commitment to addressing near-term challenges while focusing on key areas for future growth.
In a strategic move to streamline operations and drive growth, Nike announced earlier this year its plans to reduce its global workforce by 2%, resulting in over 1,600 job cuts. The company aims to reallocate the cost savings towards high-potential areas such as sport, health, and wellness.
The market responded positively to the news of Hill's appointment, with Nike's stock surging nearly 8% after the announcement was made following the close of regular-session trading on Wall Street. This development signals investor confidence in Nike's leadership transition and strategic direction moving forward.
