Nike appoints company veteran to succeed Donahoe as CEO, stock price briefly rises 11% after hours

Nike announced that company veteran Elliott Hill will succeed John Donahoe as CEO, hoping that this leadership change will help the struggling sportswear brand regain its glory. Hill, aged 60, originally joined Nike in 1988 and served as President of Consumer and Marketplace until his retirement in 2020. He will take over on October 14th. Donahoe, aged 64, will retire on October 13th and will continue to serve as an advisor to Nike until January 31st. Nike's stock price surged 11% in after-hours trading in New York. As of Thursday's close, the stock has fallen 25% year-to-date. Due to consumer fatigue with Nike's products, sales of this sportswear company have declined. Nike has gradually lost its edge against emerging sportswear brands like On and Hoka, as well as its longtime competitor Adidas. The previously announced 2% workforce reduction and $2 billion cost-cutting plan have dampened morale, leading employees to question Donahoe's ability to address the current situation. Since Nike lowered its revenue outlook in December last year and warned in June that sales for the new fiscal year would fall short of expectations, Donahoe has been in an awkward position