Sportswear giant Nike has a new boss. Company veteran Elliott Hill is returning to Nike after retiring and will take over as CEO on October 14. Current boss John Donahoe will stay on as an advisor to smooth the handover until the end of January, Nike said. The stock price temporarily jumped about 10 percent after the announcement.
Nike made Donahoe, who previously ran the eBay trading platform, among other things, its boss in early 2020. The hope is that his experience in the tech industry will modernize the company. His strategy includes relying more on direct sales. But the downside is that the shelf space Nike gives up in stores is partly filled by competitors' products.
After experiencing an upward trend during the pandemic, Nike's business quickly calmed down
After the coronavirus pandemic surge, when everyone had more time to exercise, business quickly calmed down. In the last fiscal year, which ended in late May, sales stagnated below $51.4 billion. Nike is currently undertaking a cost-cutting program started by Donahoe.
During his time at Nike, Hill was responsible for, among other things, the consumer business.