By (Reuters) – Sportswear giant Nike (NYSE:NKE) on Thursday named former senior executive Elliott Hill to succeed John Donahoe as its president and CEO, effective Oct. 14.
The company has lost about a quarter of its stock market value this year and is down more than 21% since Donahoe joined as the top executive in 2020.
Shares of rivals Adidas (OTC:ADDYY), Hoka owner Deckers and On Holding have risen 23.3%, 36.5% and 84.4%, respectively, this year.
Donahoe began his stint as CEO in 2020 with a plan to drastically grow e-commerce and to boost sales at its roughly 1,000 Nike stores. But Nike forecast a drop in its fiscal 2025 sales following at least four consecutive quarters of poor sales.
Here are some other major events for Nike on Donahoe’s watch:
Oct. 22, 2019 Nike named Donahoe, a former eBay (NASDAQ:EBAY) chief
executive officer, as its new CEO,
effective Jan. 13, 2020, replacing
long-time chief Mark Parker.
June 25, 2020 Nike swung to a quarterly loss for the
first time in two years. Donahoe laid out
Nike’s long term plan for its digital
channel to account for 50% of its overall
business.
Donahoe said at the time that
Nike intentionally shifted away from its
prior focus on selling shoes through
department stores and third party retail
chains.
He said it now focused on giving consumers
“a more premium shopping experience” at
Nike.com and Nike stores.
June 26, 2020 Nike warns of jobs cuts.
July 24, 2020 Donahoe’s pay was about $53.5 million,
according to a filing.
Dec 13, 2021 Nike bought virtual sneaker company RTFKT
for an undisclosed sum, in what Donahoe
said was a key step in Nike’s digital
transformation.
March 21, 2022 Revenue from Nike’s mobile app was up more
than 50% in the third quarter. “Growing
participation in new digital platforms”
gave Nike “innovative ways to connect with
consumers, letting them unlock virtual
experiences, products and rewards,”
Donahoe said.
June 23, 2022 Four months after Russia invaded Ukraine,
and two months after rival Puma suspended
operation of all its stores in response to
Moscow’s invasion, Nike said it would exit
Russia.
Rival Adidas said in October 2022 that it
had decided to permanently halt business
in Russia.
Dec 20, 2022 Nike reported record digital results, as
well as strong store traffic with COVID
restrictions lifting. “We directly connect
with the consumer no matter where they
shop,” Donahoe said, referring to its
direct sales.
June 29, 2023 Nike warned of a weak start to fiscal 2024
as shoppers in the U.S. turned cautious.
“We’ll continue to expand our marketplace
strategy to … drive growth,” Donahoe
said.
Dec 21, 2023 Nike cut the number of Nike products in a
$2 billion cost savings program due to
weak sales across its channels. CFO
Matthew Friend said Nike’s
direct-to-consumer focus had “added
complexity and inefficiency.”
Feb 15, 2024 Nike cuts about 2% of its total workforce
of about 80,000 employees to lower
expenses.
March 21, 2024 Donahoe said Nike must “lean in” with its
retail partners. It also warned of weak
sales in first half of fiscal 2025.
June 27, 2024 Nike forecast a surprise drop in sales for
fiscal 2025, which Donahoe said would be a
“transition year” as digital sales
tanked.
June 28, 2024 Nike’s stock tumbles to its worst day
ever, wiping out $28.41 billion from its
market valuation.
July 25, 2024 Donahoe’s annual compensation was $29.2
million, according to a filing.
Aug. 14, 2024 Billionaire investor William Ackman built
new stakes in Nike. Other shareholders and
at several Wall Street analysts begin to
speculate about the possibility of
executive changes.
Sept. 19, 2024 Nike said President and CEO Donahoe will
retire, and former senior executive
Elliott Hill will succeed him, effective
Oct. 14. After hours share gains added $9
billion in market cap.