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Elliott Hill Returns to Nike as CEO Amid Challenges

Elliott Hill Returns to Nike as CEO Amid Challenges
  • PublishedSeptember 23, 2024

Elliott Hill is set to return to Nike as chief executive, taking the helm of a company facing significant challenges, the Wall Street Journal reports.

Known for his emotional connection to the brand, Hill’s appointment comes as Nike grapples with a demoralized workforce and declining market share against competitors.

Having begun his career at Nike in 1988 as an intern, Hill has spent over three decades within the organization, ascending to top executive roles before retiring in 2020 after being overlooked for the CEO position. His return was announced following the retirement of current CEO John Donahoe, whose leadership faced criticism for strategic missteps that led to a loss of ground in key market segments.

Phil Knight, Nike’s co-founder and largest shareholder, played a pivotal role in Hill’s return, reversing his earlier support for Donahoe. Hill’s mission will be to guide Nike through a critical turnaround beginning in October, amid increasing competition from brands like Hoka and On, which have begun to capture market share in running and lifestyle categories.

One of Hill’s immediate challenges will be managing iconic franchises such as Air Jordan and Dunk, which have been oversaturated in the market. Nike is now working to engineer scarcity by reducing new product releases, a move that could impact sales growth in the short term.

Rebuilding company culture is another critical task for Hill, as morale has suffered in recent years due to various restructurings. In a memo to staff, he acknowledged the difficulties faced and called for a united effort moving forward. His return has already positively impacted employee morale and boosted Nike’s stock price.

Hill is regarded as a dedicated leader who understands the company’s values and the importance of its workforce. His prior experience includes pivotal roles in North America and Europe, where he contributed to Nike’s strategies aimed at enhancing direct-to-consumer sales.

Previously, Hill was part of a team that formulated a turnaround strategy in 2017 when Nike was losing ground to Adidas. This involved increasing product launches and developing a more robust online sales presence. However, Donahoe’s shift toward an aggressive digital sales strategy, which included reducing ties with traditional retail partners, led to challenges that Hill will now address.

As Hill steps back into a leadership role, he aims to restore Nike’s competitive edge and foster a renewed sense of purpose among its more than 80,000 employees. With a deep emotional connection to the company, Hill’s leadership style is expected to reflect a commitment to the people behind the brand.

Written By
Joe Yans