Nike, the famous American firm based in Beaverton, Oregon, the undisputed leader not so long ago, is taking its sneakers to the carpet. Competition is fierce, and the brand with the swoosh is losing market share to Hoka (Deckers Outdoor), On Running (On Holding), Saucony and others.

New CEO: Elliott Hill

In September, Nike announced that John Donahoe would be stepping down as CEO at the end of the month, to be succeeded by Elliott Hill, a long-time Nike executive. Elliott Hill will take up his new post on October 14. Before retiring in 2020, Hill had held a number of senior positions in Europe and North America, helping to grow the company to over $39 billion in sales. He was responsible for sales and marketing operations for Nike and Jordan, including profit and loss, for the company's four geographic zones. Matthew Friend, Nike's CFO, said the CEO transition would give Hill the flexibility to evaluate current strategies and business trends, and develop plans to position the company for fiscal 2026 and beyond.

Investor Day postponed

Due to the management transition, Nike has decided to postpone its investor day originally scheduled for November. This decision is intended to give Elliott Hill time to reconnect with employees and teams, evaluate current strategies and develop new plans for the company's future. Matthew Friend pointed out that this flexibility would enable Hill to better position Nike for the years ahead.

Analysts believe that this decision leaves investors uncertain as to the timetable for Nike's turnaround under Hill's leadership. Jay Woods, chief global strategist at Freedom Capital Markets, said Nike would leave investors with more questions than answers as the end of the year approached.

Quarterly results

At the same time, Nike announced yesterday a drop in quarterly sales, mainly due to a lackluster North American market. For the first quarter of its offbeat fiscal year (Q1 2025), sales fell by 10% to $11.59 billion, slightly below the $11.64 billion consensus. Direct online sales fell by 13% to $4.7 billion. Nike posted net income of $1.05 billion, or 70 cents per share, versus $1.45 billion, or 94 cents per share, a year earlier. The analyst consensus had anticipated earnings per share of 52 cents.

The company hopes to return to growth under its new CEO, Elliott Hill, after several difficult years under John Donahoe, who will step down in mid-October. Nike is facing increased competition from Adidas and New Balance. In June, the group had already lowered its annual sales target, anticipating a drop of around 5%.

Undoubtedly, Nike is going through an important period of transition with the arrival of its new CEO, Elliott Hill, and the postponement of its investor day. Quarterly results show a significant drop in revenues and profits, but the company hopes that new strategies and innovation under Hill's leadership will lead to a return to growth. In the meantime, shares were down 7.5% at the opening. The next few months will be crucial in assessing the impact of these changes and Nike's ability to overcome the current market challenges.

Drawing by Amandine Victor