Shares of Nike (NKE) are rallying after the company announced that CEO John Donahoe will be stepping down next month after a rocky five years at the company. Nike veteran Elliott Hill will come out of retirement to fill the role of CEO and president effective October 14. Barclays consumer discretionary analyst Adrienne Yih joins Morning Brief to discuss Nike’s leadership shakeup and what it means for the company’s outlook. As Hill steps up to the challenge, Yih believes he will prioritize relationships with wholesale retail partners: “It’s the base for kind of the brand strength going forward. And even though it’s margin dilutive, when you’re a $50 billion global footprint brand, you need both channels to be working in your favor.” She believes that Hill is the right person for the job, explaining that he’s well-liked at the company, and before his retirement, his positions at Nike focused on the global marketplace. “We moved away from what was great about Nike, which is the brand innovation, the pipeline, the high-heat product, and the marketing that goes behind all of that. Remember, their demand creation budget used to be 10% of the top line. It had fallen under this management to about 7 to 8%, partly because there wasn’t anything to get behind,” she says, adding that she “couldn’t think of a better person” for the job. Yih explains that Hill will be at the helm of the “critical” Nike Investor Day on November 19 and believes his remarks will “set the tone for kind of going back into their channel partners in terms of the pipeline.” She notes that new products are coming to the market in early 2025, and adds that by this time next year, the focus will be on what Nike has in store for the latest back-to-school season. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
#youtube #stocks #news
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at finance.yahoo.com
– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
source
