The sporting goods manufacturer Nike is facing a leadership change. The long-time Nike veteran Elliott Hill is coming out of retirement and will take the helm starting October 14. Hill is replacing John Donahoe, who came from the tech industry in 2020 as a beacon of hope to modernize the company.

Under Donahoe, Nike increasingly focused on direct sales, which initially showed success. During the COVID-19 pandemic, Nike recorded a 25 percent increase in sales from 2020 to 2022. Especially sales through its own website yielded higher margins, as profits did not have to be shared with retailers. However, the boom did not last long. In fiscal year 2023, revenue stagnated at 51.4 billion US dollars, and a decline is even expected for the current year.

Analysts criticize that Nike has lost its innovative edge under Donahoe and is weakened by the market oversaturation with re-releases of classic models like the Air Force 1 and Air Jordan 1. At the same time, competitors have taken over the shelf space in retail stores that Nike relinquished by focusing on direct sales.

Nevertheless, Donahoe achieved an important success: Starting in 2027, Nike will replace archrival Adidas as the outfitter of the German national soccer team, which he celebrated as proof of the company's strength.

Elliott Hill, who worked at Nike for over 30 years, is now set to steer the company back on track. Market observers and analysts welcomed the decision. Krisztina Katai from Deutsche Bank Research expressed confidence in a turnaround and maintained the rating for Nike at "Buy" with a target price of $92. JPMorgan analyst Matthew Boss praised Hill for taking the helm, saying his "insider perspective" signals a change in direction.

The news of the leadership change caused Nike's stock on the NYSE to rise by 5.62 percent to $85.52 – the highest level since June. In contrast, the shares of German competitors Adidas and Puma came under pressure, which may be attributed to the increased confidence in Hill's leadership strength.