Nike (NKE) called a brand-new chief executive officer Thursday, sending its stockpile virtually 10% in after hours trading as the business tries to revitalize slowing down sales development amidst enhanced competitors.
Elliott Hill, a previous Nike exec that retired in 2020, will certainly go back to the business as the chief executive officer and head of state onOct 14. John Donahoe, Nike’s existing chief executive officer, will certainly retire efficientOct 13 and will certainly stay an expert to the business up until January 2025.
Before retiring, Hill was head of state of Nike’s customer and industry company, leading industrial and advertising and marketing procedures for Nike and the Jordan brand name.
“Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear Elliottâs global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nikeâs next stage of growth,â Nike Executive Chairman Mark Parker said in a press release.
The news comes as Nike stock has stumbled this year, falling more than 25% amid slowing revenue growth and concerns about the success of the company’s pivot to direct-to-consumer sales.
“This is excellent information for the supply, both the exec called, in addition to the timing,” Bernstein senior analyst Aneesha Sherman told Yahoo Finance. “Elliott Hill has actually operated at Nike for 32 years. He’s an item person. He’s ran retail in [Europe, Middle East, Africa] and United States inNorth America He recognizes the business and the item quite possibly.”
The stock fell 20% in June when the company reported fiscal fourth-quarter earnings and said it expects revenue to decline more than it previously thought in the coming year. The company said quarterly revenue in the fourth quarter fell 2% from the year prior to $12.61 billion, below Wall Street’s estimates for $12.86 billion. Meanwhile, Nike’s $0.99 earnings per share exceeded analysts’ expectations of $0.66. Nike’s direct-to-consumer sales declined 8% from the same quarter a year ago to $5.1 billion.
Wall Street has been closely watching Nike’s product pipeline as the Oregon-based company works to fend off competition in its core athletic footwear market from rivals like Adidas ( ADDYY) and loved one startups like On (ONON) and Deckers’ (DECK) Hoka brand name.
Josh Schafer is a press reporter forYahoo Finance Follow him on X @_joshschafer.
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