Nike's recovery under returning CEO Elliott Hill remains elusive as shares trade near lows
Elliott Hill, who rejoined Nike as CEO in 2024 after a 32-year career, has restored some wholesale relationships and refocused on innovation, but the company's stock has fallen to about $40, roughly half its 52-week high. Investors remain skeptical of the turnaround, and Nike is now the lowest-priced stock in the Dow Jones Industrial Average. The initial enthusiasm over Hill's appointment has faded, highlighting the difficulty of winning back consumers and cultural relevance.
Hill's lengthy tenure at Nike, spanning from an internship in 1988 to president of consumer and marketplace, made him a familiar figure when he returned in September 2024. His appointment triggered an 8% after-hours stock surge and celebrations across the Beaverton campus, as employees and investors alike welcomed the departure of predecessor John Donahoe.
The company's latest quarterly results reveal persistent weakness across multiple channels. Nike Direct fell 7%, digital sales dropped 12%, and store revenue declined 7%. While wholesale grew 4% and running posted five consecutive quarters of double-digit growth, these gains have not offset broader declines in China and Europe, leaving the stock near $40.
Nike's prolonged slump could have ripple effects beyond shareholders. As the lowest-priced Dow component, its struggles may signal shifting consumer preferences in athletic wear and raise questions about legacy brands' cultural staying power. Retail partners who depend on Nike's brand strength could face pressure, while employees and suppliers in manufacturing regions may feel consequences of continued cost-cutting. The company's difficulty regaining relevance may also reflect broader challenges facing established consumer brands in an era of fragmented tastes and intense competition.