Nike shares jump as CEO John Donahoe steps down

Nike's share price was set to surge on Friday morning after the news that boss John Donahoe is to step down next month amid the sports apparel giant's struggles to regain momentum in key markets.

Donahoe, who has led Nike as president and chief executive since January 2020, will be replaced by company veteran Elliott Hill, who retired from the company four years ago.

Prior to his exit, Hill as the president and Consumer and Marketplace at Nike, leading all commercial and marketing operations for Nike and Jordan Brand, including the P&L across the company’s four geographies.

Donahoe's resignation, which Nike said was a joint decision by both the board and himself, follows a 24% decline in the stock since the start of the year as the company lost market share amid fierce competition and tough macro conditions.

The share price tanked in June after Nike scaled back it sales outlook for this year on the back of double-digit in-store sales declines in China and "uneven" trading across the rest of the group. At the time, Donahoe admitted that it "has been a challenging last year".

In a statement on Thursday evening, executive chair Mark Parker thanked Donahoe for his contribution. "I would particularly like to recognise the role he played in leading the company during the COVID pandemic and his unwavering support for the investments Nike has made in our communities around the world," Parker said.

Donahoe will retire next month, but remain as an advisor to the company to ensure a smooth transition through to January.

“I am excited to welcome Elliott back to NIKE," Parker said. "Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear Elliott’s global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike’s next stage of growth."

Nike futures were up 7% at $85.83 by 0710 in New York.