Share in Nike Inc (NYSE:NKE, ETR:NKE) surged more than 7% in after hours trading as the trainer giant announced boss John Donahoe is to step down with former executive Elliott Hill to take the helm.
Nike has been losing market share to a new, younger breed of trainer makers such as the Roger Federer-backed ON and colour-focused Hoka, while its traditional markets such as China have slowed.
As a result, sales have stalled while its share price sits close to a five-year low.
Donahoe has been in charge at Nike since 2020 having been the driving force behind the group’s shift to online and direct sales rather than through stores, its traditional outlet.
He said he would retire on 13 October, adding it was now “The time to make a leadership change".
Hill retired from Nike four years ago after holding senior executive positions in Europe and the US.
"Together with our talented teams, I look forward to delivering bold, innovative products, that set us apart in the marketplace,” he said.