Nike’s hard-hit shares topped the Dow’s leaderboard Friday as Wall Street analysts largely welcomed the company’s appointment of longtime executive Elliott Hill as its new CEO.
Nike’s hard-hit shares surged Friday, leading the Dow’s advancers, as Wall Street analysts broadly welcomed the appointment of veteran executive Elliott Hill as the new Chief Executive Officer (CEO). Hill, who spent 32 years at the company before retiring in 2020, will replace John Donahoe, who has served as CEO for nearly five years.
Shares of Nike (NKE) jumped about 6% in Friday’s trading, though the stock remains down roughly 20% for the year.
Jefferies analysts noted that while investors celebrated Hill’s return, he faces significant headwinds after his four-year absence, including increased competition and changes in distribution, branding, and product offerings. Hill, previously the head of Nike’s consumer and marketplace division, takes over a company grappling with rising competition from newer brands like Hoka and challenges from its shift toward e-commerce during the pandemic.
In June, Nike delivered disappointing fiscal Q4 results and revised its outlook. Donahoe, who pushed a digital-first strategy by pivoting sales away from traditional retail partners, faced challenges as consumer preferences shifted back to in-person shopping. Jefferies maintained its “hold” rating, suggesting Nike’s shares may remain range-bound until the company provides a clearer strategy at its upcoming analyst day on November 19.
Bank of America, however, remains more optimistic, maintaining its “buy” rating. Analyst Lorraine Hutchinson said Hill’s appointment signals a positive step in turning Nike’s fortunes around. She noted that Hill’s long history with the company positions him well to rejuvenate product innovation, rebuild relationships with wholesale partners, and drive sales growth.
With Wall Street’s average price target for Nike’s shares sitting just above $89, analysts and investors alike are eager to see how Hill’s leadership will shape the brand’s future strategy.
