Key events at Nike under CEO John Donahoe

Published : 4 weeks ago, on 10/09/2024

(Reuters) – Nike will hold its annual meeting virtually on Tuesday and a key issue to be voted on will be a workers’ rights agreement, putting the spotlight on its CEO John Donahoe who is under pressure to reverse a long sales slump at the sportswear giant.

Nike has lost about a quarter of its stock-market value this year. Shares of rivals Adidas, Hoka owner Deckers and On Holding have risen 16%, 33% and 65% respectively in the same period.

Donahoe began his stint as CEO in 2020 with a plan to drastically grow e-commerce and to boost sales at its roughly 1,000 Nike stores. But Nike forecast a drop in its fiscal 2025 sales following at least four consecutive quarters of poor sales.

Here are some other major events for Nike on Donahoe’s watch:

Oct. 22, 2019 Nike named Donahoe, a former eBay chief

executive officer, as its new CEO,

effective Jan. 13, 2020, replacing

long-time chief Mark Parker.

 

June 25, 2020 Nike swung to a quarterly loss for the

first time in two years. Donahoe laid out

Nike’s long term plan for its digital

channel to account for 50% of its overall

business.

Donahoe said at the time that

Nike intentionally shifted away from its

prior focus on selling shoes through

department stores and third party retail

chains.

He said it now focused on giving consumers

“a more premium shopping experience” at

Nike.com and Nike stores.

 

June 26, 2020 Nike warns of jobs cuts.

 

July 24, 2020 Donahoe’s pay was about $53.5 million,

according to a filing.

Dec 13, 2021 Nike bought virtual sneaker company RTFKT

for an undisclosed sum, in what Donahoe

said was a key step in Nike’s digital

transformation.

 

March 21, 2022 Revenue from Nike’s mobile app was up more

than 50% in the third quarter. “Growing

participation in new digital platforms”

gave Nike “innovative ways to connect with

consumers, letting them unlock virtual

experiences, products and rewards,” Donahoe

said.

 

June 23, 2022 Four months after Russia invaded Ukraine,

and two months after rival Puma suspended

operation of all its stores in response to

Moscow’s invasion, Nike said it would exit

Russia.

 

Rival Adidas said in October 2022 that it

had decided to permanently halt business in

Russia.

 

Dec 20, 2022 Nike reported record digital results, as

well as strong store traffic with COVID

restrictions lifting. “We directly connect

with the consumer no matter where they

shop,” Donahoe said, referring to its

direct sales.

June 29, 2023 Nike warned of a weak start to fiscal 2024

as shoppers in the U.S. turned cautious.

“We’ll continue to expand our marketplace

strategy to … drive growth,” Donahoe

said.

Dec 21, 2023 Nike cut the number of Nike products in a

$2 billion cost savings program due to weak

sales across its channels. CFO Matthew

Friend said Nike’s direct-to-consumer focus

had “added complexity and inefficiency.”

Feb 15, 2024 Nike cuts about 2% of its total workforce

of about 80,000 employees to lower

expenses.

 

March 21, 2024 Donahoe said Nike must “lean in” with its

retail partners. It also warned of weak

sales in first half of fiscal 2025.

June 27, 2024 Nike forecast a surprise drop in sales for

fiscal 2025, which Donahoe said would be a

“transition year” as digital sales tanked.

 

June 28, 2024 Nike’s stock tumbles to its worst day ever,

wiping out $28.41 billion from its market

valuation.

July 25, 2024 Donahoe’s annual compensation was $29.2

million, according to a filing.

Aug. 14, 2024 Billionaire investor William Ackman built

new stakes in Nike. Other shareholders and

at several Wall Street analysts begin to

speculate about the possibility of

executive changes.

 

(Reporting by Anuja Bharat Mistry, Juveria Tabassum and Aishwarya Venugopal in Bengaluru; Editing by Nick Zieminski)