Nike has announced the return of Elliott Hill as president and CEO, replacing John Donahoe who will step down on October 14.

Hill will also become a director of the board and a member of the executive committee. He previously held various leadership positions during his 32 years with Nike before retiring in 2020.

Executive chairman Mark Parker said the board made the decision after a “thoughtful succession process”. He added that Hill’s global expertise, leadership style, and deep understanding of the industry will be suitable for the company’s future growth.

Donahoe will remain as an advisor to ensure a smooth transition through January 31. He took the company’s top seat in January 2020, succeeding Mark Parker after his 14-year tenure.

According to GlobalData MD Neil Saunders, Donahoe’s departure is “inevitable” following the company’s long period of decline and underperformance. 

“Under his tenure, Nike made a number of mistakes which have weakened the brand. This has left investors dissatisfied and somewhat skeptical of leadership,” he elaborated.

Hill’s return shows that the company is trying to get back to its roots, which includes better storytelling, more product innovation, and closer partnerships with important retailers, the analyst said.

“Hill likely has the skill and vision to turn the business around, but this will not happen overnight. A change of jockey does not automatically put the Nike horse out in front,” he concluded.