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 mentioned Thursday that Elliott Hill, a former Nike government 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 client and market enterprise, main industrial 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 type, and deep understanding of our business and companions, paired along with his ardour for sport, our manufacturers, merchandise, customers, athletes, and staff, make him the appropriate particular person to steer Nike’s subsequent stage of progress,” Nike government chairman Mark Parker mentioned in a press launch.
The information comes as Nike inventory has stumbled this yr, falling greater than 25% amid slowing income progress and issues in regards to the success of the corporate’s pivot to direct-to-consumer gross sales.
“This is superb information for the inventory, each the manager named in addition to the timing,” Bernstein senior analyst Aneesha Sherman instructed 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 mentioned it expects income to say no greater than it beforehand thought within the coming yr. The corporate mentioned quarterly income within the fourth quarter fell 2% from the yr previous to $12.61 billion, beneath Wall Avenue’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 yr in the past to $5.1 billion.
Wall Avenue 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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