Nike rises as company veteran Elliott Hill is named CEO

Grafa2024-09-20

Nike (NYSE:NKE) saw its shares jump 6.8% to $86.48 in premarket trading on Friday, after announcing the appointment of company veteran Elliott Hill as CEO.

Hill, who has spent over 32 years at Nike in senior leadership roles before retiring in 2020, is expected to lead a turnaround for the sportswear giant, which has recently faced strategic missteps and growing competition.

Citi analysts commented on the appointment, noting that Hill's return signals Nike's commitment to a balanced distribution strategy between wholesale and direct-to-consumer (DTC), while minimizing risks to its innovation pipeline and product realignment efforts.

Hill was previously considered a top contender for the CEO position when former CEO Mark Parker retired in 2020.

He will officially take over the role on October 14, succeeding John Donahoe, who will stay on as an advisor until January 31, 2025, to ensure a smooth transition.

Despite the positive reaction to Hill's return, Nike’s share price remains down approximately 25% year-to-date.

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