Nike’s top executive is stepping down next month, leaving a company veteran to take his place as leader of the world’s largest sportswear company amid tough competition in the retail industry.
Nike said in a statement that John Donahoe will leave the company on Oct. 13 and will stay on as an adviser until early next year to “ensure a smooth transition.”
Demand for the company’s trainers has been sluggish in international markets such as China, causing its stock price to fall.
However, shares rose more than 9% in after-hours trading following the announcement that Elliott Hill would return to the company.
Donahoe was responsible for expanding Nike’s online presence and increasing sales directly from consumers, rather than partnering with other stores on high streets or in shopping centers.
He joined the company’s board of directors in 2014 and became its chief executive officer in 2020.
His tenure has been difficult, with major changes in the retail industry during the pandemic and surging inflation in the years since.
The shoe maker also faces stiff competition from newer rivals such as On and Hoka, which some analysts say are more innovative and ahead of current trends.
Nike had hoped that new products and marketing campaigns celebrating the Paris Olympics would draw customers back to the brand.
But Thursday’s announcement said the board and Donahoe “have decided that he will step down from his role.”
“It’s clear that now is the time for a leadership transition,” Donahoe said, adding that Hill is the right person for the job and he looks forward to his continued success.
His successor, Hill, retired from the company just four years ago after holding a number of senior management roles in Europe and the United States.
He said he wanted to “reconnect” with employees he worked with in the past.
“Together with our talented team, I look forward to delivering bold, innovative products that will differentiate us in the market and captivate consumers for years to come,” he added.