Nike CEO John Donahoe will step down from the company and former CEO Elliott Hill is coming back to replace him.
Transcript:
Conway Gittens: Here’s what we’re watching on TheStreet today.
Wall Street is focused on corporate news. FedEx posted disappointing quarterly profits thanks to a drop in demand for its fastest shipping options. The package delivery industry is still grappling with a slowdown from the heady days of the pandemic – when everyone was stuck at home and having everything delivered.
Turning to another big corporate headline: A familiar face is coming back to take over the top spot at Nike. Elliott Hill is returning as CEO, replacing outgoing chief executive John Donahue.
Hill has a storied career at the athletic gear company. He started as an intern back in 1988 and stayed until he retired 32 years later. During that time he helped Nike retain its dominance – overseeing commercial and marketing operations for both the Nike brand and the lucrative Jordan moniker. He also oversaw departments in both Europe and in North America.
Hill will need all that expertise to help lift Nike out of a funk. Under his predecessor’s rule, Nike focused less on the innovative designs famous for sparking lines at sneaker debuts – rivaling any other product except the iPhone. That left the door open for its main rival Adidas to regain momentum. At the same time, a number of upstarts like Hoka and On came nipping at its heels.
Another misstep: Nike started reserving products for direct-to-consumer sales from its own website, creating a rift with major retail partners like Footlocker. The end result: sales in its biggest market – North America – fell for the fiscal year and the company warned of more weakness ahead.
Investors are happy with Hill’s return. Shares of Nike popped on the news, but are down 20 percent year-to-date.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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