(Reuters) – Sportswear big Nike (NYSE:) on Thursday named former senior government Elliott Hill to succeed John Donahoe as its president and CEO, efficient Oct. 14.
The corporate has misplaced a couple of quarter of its inventory market worth this yr and is down greater than 21% since Donahoe joined as the highest government in 2020.
Shares of rivals Adidas (OTC:), Hoka proprietor Deckers and On Holding have risen 23.3%, 36.5% and 84.4%, respectively, this yr.
Donahoe started his stint as CEO in 2020 with a plan to drastically develop e-commerce and to spice up gross sales at its roughly 1,000 Nike shops. However Nike forecast a drop in its fiscal 2025 gross sales following at the very least 4 consecutive quarters of poor gross sales.
Listed here are another main occasions for Nike on Donahoe’s watch:
Oct. 22, 2019 Nike named Donahoe, a former eBay (NASDAQ:) chief
government officer, as its new CEO,
efficient Jan. 13, 2020, changing
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 run plan for its digital
channel to account for 50% of its general
enterprise.
Donahoe stated on the time that
Nike deliberately shifted away from its
prior deal with promoting sneakers via
malls and third get together retail
chains.
He stated it now centered on giving customers
“a extra premium buying expertise” at
Nike.com and Nike shops.
June 26, 2020 Nike warns of jobs cuts.
July 24, 2020 Donahoe’s pay was about $53.5 million,
in line with a submitting.
Dec 13, 2021 Nike purchased digital sneaker firm RTFKT
for an undisclosed sum, in what Donahoe
stated was a key step in Nike’s digital
transformation.
March 21, 2022 Income from Nike’s cell app was up extra
than 50% within the third quarter. “Rising
participation in new digital platforms”
gave Nike “progressive methods to attach with
customers, letting them unlock digital
experiences, merchandise and rewards,”
Donahoe stated.
June 23, 2022 4 months after Russia invaded Ukraine,
and two months after rival Puma suspended
operation of all its shops in response to
Moscow’s invasion, Nike stated it will exit
Russia.
Rival Adidas stated in October 2022 that it
had determined to completely halt enterprise
in Russia.
Dec 20, 2022 Nike reported file digital outcomes, as
properly as robust retailer visitors with COVID
restrictions lifting. “We immediately join
with the buyer irrespective of the place they
store,” Donahoe stated, referring to its
direct gross sales.
June 29, 2023 Nike warned of a weak begin to fiscal 2024
as customers within the U.S. turned cautious.
“We’ll proceed to increase our market
technique to … drive development,” Donahoe
stated.
Dec 21, 2023 Nike minimize the variety of Nike merchandise in a
$2 billion value financial savings program as a consequence of
weak gross sales throughout its channels. CFO
Matthew Buddy stated Nike’s
direct-to-consumer focus had “added
complexity and inefficiency.”
Feb 15, 2024 Nike cuts about 2% of its whole workforce
of about 80,000 staff to decrease
bills.
March 21, 2024 Donahoe stated Nike should “lean in” with its
retail companions. It additionally warned of weak
gross sales in first half of fiscal 2025.
June 27, 2024 Nike forecast a shock drop in gross sales for
fiscal 2025, which Donahoe stated could be a
“transition yr” as digital gross sales
tanked.
June 28, 2024 Nike’s inventory 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, in line with a submitting.
Aug. 14, 2024 Billionaire investor William Ackman constructed
new stakes in Nike. Different shareholders and
at a number of Wall Road analysts start to
speculate about the opportunity of
government adjustments.
Sept. 19, 2024 Nike stated President and CEO Donahoe will
retire, and former senior government
Elliott Hill will succeed him, efficient
Oct. 14. After hours share good points added $9
billion in market cap.
