On Thursday, Nike (NYSE: NKE), the Sportswear giant, named former senior executive Elliott Hill to succeed John Donahoe as its president and CEO, effective October 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, Hoka owner Deckers (NYSE: DECK), and On Holding (NYSE: ONON) 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 (NYSE: NKE) on Donahoe’s watch:
Oct. 22, 2019
Nike named Donahoe, a former eBay (NASDAQ: EBAY) chief executive officer, as its new CEO, effective January 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 (NYSE: NKE) 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 (NYSE: NKE) 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 (NYSE: NKE) 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 (NYSE: NKE) said President and CEO Donahoe will retire, and former senior executive Elliott Hill will succeed him, effective October 14. After-hours share gains added $9 billion in market cap.
(Source: ReutersReuters)
