Nike’s boss is to step down next month, clearing the way for a company veteran to take over as leader of the world’s biggest sportswear company amid fierce competition in the retail sector.
In the statementNike said John Donahoe will retire on October 13, continuing in an advisory role until early next year to “ensure a smooth transition”.
The demand for the company’s trainers has been faltering in international markets such as China and the company’s stock price has been falling.
Shares rose more than 9% in after-hours trading, however, following the announcement that Elliott Hill would return to the company.
Mr Donahoe was responsible for developing Nike’s online presence, as well as driving more sales direct to customers rather than partnering with other stores on the High Street or shopping centres.
He joined the company’s board in 2014 before assuming the position of CEO in 2020.
His tenure was challenged by major changes in the retail industry during the crisis and as inflation increased in the following years.
The shoe firm also faced stiff competition from new rivals such as On and Hoka, which some analysts described as innovative and on top of current trends.
Nike hoped that the new products and marketing campaign around the Olympic Games in Paris will help bring consumers back to the brand.
But in an announcement on Thursday, it said the board and Mr Donahoe had “decided that he will retire from his position”.
“It was clear now that it was time to make a change in leadership,” said Mr. Donahoe, adding that Elliott Hill is the right person for the job and he looks forward to seeing his future success.
His successor, Mr Hill, retired from the company four years ago after serving in a number of senior leadership roles in Europe and the US.
He said he was eager to reconnect with the workers he worked with in the past.
“Together with our talented teams, I look forward to delivering bold, innovative products that will differentiate us in the market and attract consumers for years to come,” he added.
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