Nike CEO Donahoe to Retire; Hill to Return as Successor — 2nd Update

By Sabela Ojea

Nike Chief Executive John Donahoe is leaving the sneaker company.

Comapny veteran Elliott Hill is returning to Nike and will take the CEO reins as of Oct. 14. He previously served as consumer president of Nike until Donahoe took over and shuffled the sportswear company's leadership ranks about a month into the job.

Shares rose 10% to $89.10 on the news in after hours trading. The stock was down 25% year to date as of Thursday's market close.

"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," Executive Chairman Mark Parker said.

Donahoe took over the top job in January 2020 after serving on the board since 2014. Under his leadership, the company saw annual sales grow significantly from about $37 billion to over $51 billion in fiscal 2024. But its stock has stumbled this year, weighed down by its decision to coast on popular shoe lines instead of innovating.

Donahoe is expected to serve as an adviser to the company for a transitional period through Jan. 31, 2025.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

September 19, 2024 17:12 ET (21:12 GMT)

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