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John Donahoe is stepping down from Nike.

Donahoe’s tenure has been filled with scrutiny, market share loss, and frustrations (even lawsuits) from shareholders.

Donahoe took over as CEO of Nike in January 2020, bringing with him a background in technology leadership from companies like ServiceNow and eBay. However, despite his strong focus on digital transformation and innovation, Nike has faced challenges in maintaining its dominant market share during his time.

Under Donahoe’s leadership, Nike continued its push towards a direct-to-consumer (DTC) model, emphasizing e-commerce and digital sales. This approach was especially crucial during the COVID-19 pandemic, as physical stores were forced to close. While digital sales surged, Nike’s overall market share has seen some decline, primarily due to rising competition from companies like adidas and newer, more agile brands such as HOKA and Salomon. These competitors have made significant strides in the athletic apparel and footwear space (specifically running), cutting into Nike’s lead.

Moreover, supply chain disruptions during the pandemic further impacted Nike’s ability to meet demand, resulting in lost sales and missed opportunities. Despite Donahoe’s efforts to streamline operations and focus on digital growth, these issues have contributed to a dip in Nike’s market share, particularly in key segments like footwear.

In addition, Nike has faced growing competition from emerging brands that appeal to younger consumers, who are looking for sustainable and socially responsible options. Although Donahoe has prioritized sustainability initiatives, these efforts have yet to fully resonate in the market, as competitors have been quicker to capitalize on shifting consumer preferences.

Donahoe will be replaced by longtime Nike veteran, Elliott Hill, who retired in 2020 after 32 years. Hill will serve as Nike’s CEO and President.

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“I am excited to welcome Elliott back to Nike,” said Mark Parker, Executive Chairman of Nike, Inc. “Given our needs for the future, the past performance of the business, and after conducting a thoughtful succession process, the Board concluded it was clear Elliott’s global expertise, leadership style, and deep understanding of our industry and partners, paired with his passion for sport, our brands, products, consumers, athletes, and employees, make him the right person to lead Nike’s next stage of growth.”

Donahoe will also resign from Nike’s board but will stay on as an advisor until the end of January, the company confirmed.

Stay tuned to Snkrs Day on Instagram as the story develops.

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