Nike Inc. announced on October 14, 2024 a major move by its leadership regarding the end of John Donahoe’s tenure as CEO, who was removed, and the return of a familiar face of Nike Inc. to the role of President and CEO Elliott Hill, a move that signals a stepping stone and key to renewed success after several challenging years for the sports giant. Elliott Hill’s extensive experience, who returned to Nike’s leadership after four years already retired. His deep ties with Nike make his appointment a significant move as the company currently faces an urgent need to regain momentum. Under the leadership of Elliot Hill , who was with the company for over 30 years and served as President of Consumer and Marketplace, leading Nike’s sales and marketing strategy in North America and Europe, the company grew $39 billion, underscoring his deep understanding of the brand and its consumers.
Nike, Inc (NYSE:NKE) also recently released financial results for the first quarter of fiscal year 2025. Revenue for the first quarter was $11.6 billion, down 10% year-over-year. NIKE Direct’s revenue was $4.7 billion, down 13%, primarily due to a 20% decline in NIKE Brand Digital campaigns. Wholesale revenue was $6.4 billion, a decrease of 8% . Converse revenue was $501 million with a year-over-year decrease of 15%. Demand creation costs were higher year-over-year.
Among other things, Nike has recently embarked on a major restructuring of the company, with a mass layoff of around 40% of the company’s senior management. Nike said back in April that it would eliminate 740 jobs in Oregon, which equates to a cost reduction of around $2 billion. A publicly available source revealed that Nike “laid off 32 vice presidents, 112 senior directors and 174 directors, representing more than 40% of the jobs the company eliminated.” 22 senior administrative assistants and four executive assistants also lost their jobs. According to the annual report, the company employed 83,700 tribal workers in 2023. According to current information, the company employs 79,400 tribal workers.
Nike, Inc (NYSE:NKE) also pays a quarterly dividend of $0.37 per share. The annual dividend yield is 1.8%. Multinational investment corporations and financial strategists estimate a high estimate target price of $120 per share for the short- to medium-term investment horizon.
