Can Nike's new boss revive the company's fortunes?

The sportwear giant Nike have appointed Elliott Hill as its new chief executive after its embattled boss announced his resignation.

John Donahue is to step down next month as the company attempts to boost its sales in the face of rising competition.

Donahue, who has been the CEO of the sportswear giant since January 2020, said in a statement it was "clear" that the time was right for a leadership change.

"It’s been an honour and privilege to be part of this incredible company, and I’ll always value my time at Nike and the opportunity to lead the organization," Donahue said.

Nike's shares climbed by more than 9% following the announcement.

The company has struggled in recent years, with shares falling by more than 25% this year. It has faced competition from rival brands like Hoka, Altra, and On Running, whilst also being criticised for a lack in innovation.

The giant scaled back its relationship with retailers during Donahue's tenure, moving their operations online and giving its competitors the shelf space to increase their sales. Early this year Donahue admitted that Nike had gone too far in its efforts and said he was working on a plan to fix things.

Elliott Hill will take charge in October after leaving the company four years ago. He started as an intern for Nike in 1988, steadily climbing the ranks before retiring in 2020 as President of Consumer and Marketplace.

Mark Parker, Nike's Executive Chairman said the Board had chosen Hill based on a "thoughtful succession process" after considering the company's "needs for the future and past performance of the business.

"Elliott’s 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 Nike’s next stage of growth,” he said.

Hill said that he was "ready to help lead it [Nike] to an even brighter future" and that it has always been "a core part" of who is is.

“I’m eager to reconnect with the many employees and trusted partners I’ve worked with over the years, and just as excited to build new, impactful relationships that will move us ahead. Together with our talented teams, I look forward to delivering bold, innovative products, that set us apart in the marketplace and captivate consumers for years to come,” he added.

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