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The world's biggest sportswear company, Nike, is set to make leadership changes as the boss is set to step down and his place taken by a veteran of the company.
In a statement, Nike said John Donahoe will retire on 13 October, staying on in an advisory role until early next year to "ensure a smooth transition".
Mr Donahoe was responsible for boosting Nike's online presence, as well as driving more sales directly from customers instead of partnering with other shops on High Streets or in shopping centres.
He joined the company's board in 2014 before taking on the role of chief executive in 2020.
His tenure has been challenging with huge shifts in the retail landscape during the pandemic and as inflation spiked in the following years.
The athletic that CEO John Donahoe will be replaced by Elliott Hill, a veteran former Nike executive.
His successor, Mr Hill, retired from the company just four years ago after serving in a number of senior leadership roles in Europe and the US.
He said he was "eager to reconnect" with employees he had worked with in the past.
Nike’s stock rose 9% during after-hours trading Thursday. Nike’s stock has dropped 24% so far this year.
Nike faces a consumer slowdown and tough competition from upstart running brands like Hoka and On. Customers are changing their behaviors, passing up discretionary purchases of expensive sneakers and athletic clothing for basics and experiences such as concerts and travel.
Meanwhile, Nike’s effort to change its distribution strategy has backfired.
The company in recent years has slashed the number of traditional retailers that sell its goods, while attempting to shift customers to its own channels, especially online.
Nike said it could make more than double the profit selling goods through its own website and physical stores than it can through wholesale partners.
Nike has executed a strategy to focus its resources marketing and top products on just 40 select retail partners, such as Dick’s Sporting Goods and Foot Locker.
But the change was made too abruptly and hurt Nike’s sales. Nike has since brought back some of the retailers it initially cut out.
