Nike’s new CEO is expected to double down on the company’s efforts to repair relations with retailers to energize sales, reversing a strategy under outgoing chief John Donahoe that focused on selling directly through its stores and website.
The sportswear giant named company veteran Elliott Hill as its CEO on Thursday, instilling confidence in investors about a turnaround at the firm that has been struggling with strategy missteps and intense competition.
The company’s shares, which have lost a quarter of their value this year, surged 8% in early trading on Friday.
“Nike’s board (including the controlling Knight family) wanted a leader with extensive company knowledge to address its recent problems, the most pressing of which is Donahoe’s efforts to prioritize direct selling over product development and retail relationships,” Morningstar analyst David Swartz said.
