Nike leader John Donahoe will retire as chief executive next month after nearly five years at the helm, capping a tenure marked by a series of missteps that caused the sneaker giant to lose ground to competitors.
Elliott Hill, who in 2020 retired as the company’s president of consumer and marketplace, will succeed Donahoe as president and CEO starting Oct. 14, Nike said Thursday. Donahoe will also step down from the board of directors.
Donahoe took over at Nike in early 2020, and as Covid shifted shopping habits he set out to change the way the company sold shoes. Nike cut ties with longtime retail partners like Foot Locker, DSW and Macy’s and tried selling more merchandise directly to consumers.
The CEO also leaned heavily on increasing revenues by selling limited edition sneakers, which eventually became ubiquitous. The company is now struggling to maintain its foothold as consumers buy fewer Nike shoes and more from competitors like Adidas and New Balance.
The strategy backfired as the e-commerce boom faded and many shoppers returned to physical stores.
The company has since re-embraced retail partners like Foot Locker after struggling to sell merchandise on its own. Nike’s digital sales, through its website and apps, declined 10% in its most recent quarter compared with the same period a year earlier.