Nike has announced that Elliott Hill, a former top executive, will return to the firm to take over as president and CEO from John Donahoe. This change in leadership comes as the athletic giant looks to boost sales and combat growing competition.
According to the firm, Hill spent 32 years in senior leadership roles at Nike, helping to grow the company to over US $ 39 billion in revenue when he was in North America and Europe.
Prior to his retirement in 2020, he served as President of Nike’s Consumer Marketplace, overseeing all marketing and sales initiatives for the Jordan and Nike brands. He will become CEO on 14th October.
Donahoe was entrusted with increasing Nike’s internet visibility and boosting direct-to-consumer sales. The initial push enabled the business capitalise on the post-pandemic demand for athletic and leisurewear, leading to Nike’s first-ever annual revenues reaching $50 billion in the fiscal year 2023.
But since then, figures published by LSEG indicate that growth has halted and sales have become more competitive. For the fiscal year 2025, Nike’s sales are predicted to drop to $48.84 billion as consumers who are tired of inflation reduce their discretionary spending and the Chinese market recovers more slowly than anticipated.
The market for Nike has recently been hindered by a dearth of eye-catching and inventive merchandise. Rival brands with more stylish and modern trainers, like Deckers’ Hoka and Roger Federer’s On, are drawing customers and store partners.
Over the past few years, Nike has reduced its collaborations with retailers and advanced its strategy to increase sales through its own physical shops and online platforms. Due to the non-occurrence of such sales, the corporation embarked on a three-year plan to save US $ 2 billion in costs.
Nike has implemented a plan that includes employment cuts, a reduction in the production of iconic sneakers like the Air Force 1, and an attempt to enhance the supply chain in order to boost margins.
