Nike stock pops after retailer names former executive Elliott Hill as CEO

Nike (NKE) inventory popped greater than 7% in early buying and selling Friday after the corporate named a brand new CEO amid its efforts to reinvigorate slowing gross sales progress.

Nike stated Thursday that Elliott Hill, a former Nike govt who retired in 2020, will return to the corporate because the CEO and president on Oct. 14. John Donahoe, Nike’s present CEO, will retire efficient Oct. 13 and can stay an adviser to the corporate till January 2025.

Earlier than retiring, Hill was president of Nike’s shopper and market enterprise, main business and advertising operations for Nike and the Jordan model.

“Given our wants for the longer term, the previous efficiency of the enterprise, and after conducting a considerate succession course of, the Board concluded it was clear Elliott’s international experience, management model, and deep understanding of our trade and companions, paired along with his ardour for sport, our manufacturers, merchandise, shoppers, athletes, and workers, make him the fitting particular person to guide Nike’s subsequent stage of progress,” Nike govt chairman Mark Parker stated in a press launch.

The information comes as Nike inventory has stumbled this 12 months, falling greater than 25% amid slowing income progress and issues concerning the success of the corporate’s pivot to direct-to-consumer gross sales.

“This is excellent information for the inventory, each the manager named in addition to the timing,” Bernstein senior analyst Aneesha Sherman informed Yahoo Finance. “Elliott Hill has labored at Nike for 32 years. He is a product man. He is ran retail in [Europe, Middle East, Africa] and US in North America. He is aware of the corporate and the product very nicely.”

The inventory fell 20% in June when the corporate reported fiscal fourth quarter earnings and stated it expects income to say no greater than it beforehand thought within the coming 12 months. The corporate stated quarterly income within the fourth quarter fell 2% from the 12 months previous to $12.61 billion, under Wall Road’s estimates for $12.86 billion. In the meantime, Nike’s $0.99 earnings per share exceeded analysts’ expectations of $0.66. Nike’s direct-to-consumer gross sales declined 8% from the identical quarter a 12 months in the past to $5.1 billion.

Wall Road has been intently watching Nike’s product pipeline because the Oregon-based firm works to fend off competitors in its core athletic footwear market from rivals like Adidas (ADDYY) and relative upstarts like On (ONON) and Deckers’ (DECK) Hoka model.

Josh Schafer is a reporter for Yahoo Finance. Comply with him on X @_joshschafer.

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