Nike announced Thursday that it will be replacing its current CEO, John Donahoe, with company veteran Elliott Hill, who is coming out of retirement.
Donahoe, who has served as the CEO of the sneaker giant since January 2020, is set to end his stint as the top company executive and from the Nike, Inc. Board of Directors on Oct. 13. However, he will remain as an advisor to the company to ensure a smooth transition through Jan. 31, 2025, the company said in a press release.
Hill will assume his new role on Oct. 14 and will also join the Board of Directors and the Executive Committee.
Following the news, Nike's shares surged 8% in extended trading.
Hill is returning to Nike after retiring in 2020. He spent 32 years with the company, holding senior leadership positions across Europe and North America, and was responsible for helping grow the business to more than $39 billion, according to the company.
"I am excited to welcome Elliott back to Nike. Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear Elliott's global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike's next stage of growth," said Mark Parker, Nike's executive chairman.
Hill, on his part, expressed his enthusiasm about reconnecting with employees and the prospect of being able to deliver "bold, innovative products, that set us apart in the marketplace and captivate consumers for years to come."
"NIKE has always been a core part of who I am, and I'm ready to help lead it to an even brighter future," he added.
The leadership change comes as the company is currently in the midst of a restructuring after deciding to shift its strategy to sell directly to consumers. According to critics, by focusing on increasing sales at its stores and website, Nike has lost sight of innovation and for the past years, has not put out iconic sneakers that defined the brand, CNBC reported.
The company warned about its sales dropping in late June, citing a soft demand in China, as well as "uneven" consumer trends worldwide. At the time, Nike co-founder Phil Knight stood by Donahoe despite rough financial reports.
However, following the leadership change, Knight expressed his excitement about welcoming Hill back to the team.
In a statement, Donahoe said that "now was the time to make a leadership change," and called Elliott "the right person" for the job.
