Nike boss steps down as firm veteran returns | EUROtoday

The boss of Nike will step down subsequent month, making method for an organization veteran to take his place because the chief of the world’s greatest sportswear firm amid robust competitors within the retail sector.

In an announcementNike mentioned John Donahoe will retire on 13 October, staying on in an advisory position till early subsequent 12 months to “ensure a smooth transition”.

Demand for the corporate’s trainers has been faltering in worldwide markets like China and the corporate’s inventory value had slumped.

Shares rose greater than 9% in after-hours buying and selling, nevertheless, following the announcement that Elliott Hill would return to the agency.

Mr Donahoe was answerable for boosting Nike’s on-line presence, in addition to driving extra gross sales instantly from prospects as a substitute of partnering with different outlets on High Streets or in procuring centres.

He joined the corporate’s board in 2014 earlier than taking over the position of chief government in 2020.

His tenure has been difficult with big shifts within the retail panorama in the course of the pandemic and as inflation spiked within the following years.

The footwear agency has additionally confronted robust competitors from the likes of newer rivals like On and Hoka, which some analysts have described as being extra modern and on-top of present traits.

Nike had been hoping that new merchandise and a advertising marketing campaign across the Olympic Games in Paris would assist convey consumers again to the model.

But within the announcement on Thursday, it mentioned that the board and Mr Donahoe had “decided he will retire from his role”.

“It grew to become clear now was the time to make a management change,” Mr Donahoe said, adding that Elliott Hill is the right person for the job and he was looking forward to seeing his future success.

His successor, Mr Hill, retired from the company just four years ago after serving in a number of senior leadership roles in Europe and the US.

He said he was “desperate to reconnect” with employees he had worked with in the past.

“Together with our gifted groups, I sit up for delivering daring, modern merchandise, that set us aside within the market and captivate shoppers for years to return,” he added.