Nike announced that company veteran Elliott Hill will succeed John Donahoe as CEO, hoping that this change in leadership will help the struggling sports brand regain its glory.

Hill, 60 years old, originally joined Nike in 1988 and served as the President of Consumer and Marketplace until his retirement in 2020. He will assume his new position on October 14th. Donahoe, 64 years old, will retire on October 13th and will continue to serve as an advisor to Nike until January 31st.

Nike's stock price rose 11% in after-hours trading in New York, currently up nearly 8%. As of Thursday's closing, the stock has accumulated a 25% decline this year.

Due to consumer fatigue with Nike's products, the sales of this sporting goods company have declined. Nike has gradually lost its advantage to emerging sportswear brands like On and Hoka, as well as its long-time competitor Adidas.

The previously announced 2% workforce reduction and $2 billion cost-cutting plan have hit morale and made employees question Donahoe's ability to deal with the current situation. Since Nike lowered its revenue outlook in December and warned that sales for the new fiscal year would fall short of expectations in June, Donahoe has been in an awkward position.

Editor / jayden