Is Nike CEO Elliot Hill’s Turnaround Strategy Successful?

Nike’s CEO Elliott Hill has completed the first year of his tenure, during which the company says he has been keen to disprove complaints that the company has stopped innovating.

Elliott says that, in his first year, the world’s largest sportswear brand is starting to find its footing again. In an October interview with CNBC, he outlined a turnaround strategy relying on innovation, sport and rebuilding trust with consumers.

Current figures show that Nike is still trading less than half of its pandemic-era market valuation, and last year the stock suffered its worst trading day in history.

However, according to Business Insider, the day of Elliott’s appointment in September 2024 saw Nike stocks jump 8%, setting a trajectory that the CEO hopes to continue throughout the rest of his tenure.

A press release by Nike on 15 October says that he has made it his mission to reignite Nike’s reputation as a “trailblazing sports company” and a “leader of innovation”, focusing on making it “an ideas company” not just a product company.

Grading his comeback plan

During the quarter before Elliott started, Nike’s revenue fell 10% year-over-year to US$11.6bn, following flat growth in the 2024 fiscal year.

John Donahoe, the previous Nike CEO, had spent years encouraging customers to buy directly from its websites and stores - which Elliott claims stunted growth.

The current CEO is now working to rebuild the relationships between wholesalers and reclaim shelf space ceded to competitors to promote sales in those areas.

He's also introducing new partnerships, such as with women’s retailer Aritzia, to target under-penetrated consumer segments, and is shifting the internal structure back to sport-specific categories, rather than men’s women’s and kid’s.

This hopes to reignite product innovation and recover from criticism over relying too heavily on legacy products like Air Force 1 trainers.

A report by Business Insider has several analysts saying it’s still early to fully grade the CEO, but notes that his plan does show signs of restoring Nike’s edge in running and retail.

However, some gave the brand’s comeback a B, saying it's taking longer than expected.

A Nike spokesperson told Business Insider that Elliott’s tenure so far has been “defined by focus and renewal”.

They added that he’s “rebuilt trust with key retail partners, and he's re-energised the employee community around sports, athletes and our purpose”.

Fostering collaborative environments

As a boss, Elliott aims to inspire employees to also advocate for inspiring new sportswear as a channel for increased growth.

Nike reports that after the CEO took part in a HIIT workout, he noticed two employees and asked them about their progress working on cleats - the soles of shoes.

He said that it’s all about restoring the pride employees have in the company, saying if they don’t believe in themselves, no one else would either.

Discussing the enthusiasm of his employees, he said: “They were so proud to say, ‘Look what I got coming.’ That’s what I want.

“I want people to feel a sense of pride in their work, in their craft, in their service to the athlete.”

According to Nike, he brings the same personable attentiveness to athletes that work with the brand, connecting with them to build genuine relationships.

Elliot said: “Great relationships are built on mutual trust and respect, over time, from showing up.

“So first game, you get in the rings and you want me to go? I’ll be there.”

The head coach of the University of Oregon football team, Dan Lanning, said: “The way he makes everybody in the room feel special is just unbelievable. I remember walking away from our first interaction, telling my wife, ‘This guy’s gonna make it tick’”.