John Donahoe will retire on October 13 and continue in an advisory capacity until the beginning of next year, according to a statement from Nike, in order to “ensure a smooth transition”.
The company’s stock price has plummeted, and demand for its trainers has been waning in overseas markets like China.
However, after-hours trading saw a more than 9% increase in shares after the company announced Elliott Hill’s comeback.
Mr. Donahoe was in charge of increasing Nike’s online visibility and generating more sales from clients directly as opposed to collaborating with other.
Prior to becoming the company’s chief executive in 2020, he became a board member in 2014.
Significant changes in the retail environment during the epidemic and the subsequent surge in inflation made his tenure difficult.
The footwear company has also had to contend with fierce competition from competitors that are relatively new, such as On and Hoka, which some experts have characterized as being more creative and up to date with fashion.
It was hoped that a marketing campaign around the Olympic Games in Paris, together with new items, would help entice consumers to return to the company.
However, it stated in the release on Thursday that Mr. Donahoe and the board had “decided he will retire from his role.”.
