Dive Brief:
- Adding to a long list of leadership changes, Nike Chief Innovation Officer John Hoke will retire after over 30 years at the company, according to an internal memo.
- Hoke will stay at Nike through Oct. 31 to finalize projects and support a transition. Chief Innovation, Design and Product Officer Phil McCartney (appointed to the position earlier this month) will soon announce Hoke’s successor, per the memo. Hoke's replacement will retain the title of chief innovation officer and will operate in addition to McCartney's role.
- Hoke has been with Nike for the majority of his career, joining the brand in 1995 as a global creative director, per his LinkedIn. The executive served for about 15 years as the company’s first chief design officer before taking on the chief innovation officer role.
Dive Insight:
Against the backdrop of a large turnaround journey at Nike, the retailer is losing an executive who leaves a long-lasting mark at the company he’s helped shape.
CEO Elliott Hill noted that Hoke’s impact helped establish the brand’s designs and his influence will be long-lasting even after he departs.
Hill is also part of a slew of executive leadership shifts at the athletics brand over the past year.
He became Nike’s CEO in October after John Donahoe exited the position following a decade serving on the company’s board and a few years in the top spot. Hill rejoined the brand after retiring four years earlier as Nike’s president of consumer and marketplace; he initially started working at Nike as an intern in 1988.
The appointment was followed by a larger shakeup at Nike, with the company announcing a new general manager of the North America geography in October and a new global sports marketing lead in November — both appointees having already held positions within Nike.
Over the past month, Nike announced the retirement of 26-year veteran Heidi O’Neil, who most recently served as president of consumer, product and brand, choosing to break up her responsibilities into three positions that report directly to Hill. Additionally, Nike appointed a new president of the Nike brand and a chief growth initiatives officer.
Under Hill, Nike is continuing to strategically correct the business's approach to its sales strategy. The company is working to reestablish its relationships with wholesalers, who Hill says felt Nike turned its back on after spending more of its energy on direct-to-consumer sales for years.
Earnings continue to take a hit as the company is working on this turnaround, in March reporting a 9% drop in Q3 revenue. Nike’s wholesale business declined 7% while DTC dropped 12%. Its long-term strategy aims to correct such metrics, with the brand now focused on streamlining its footwear offerings and turning a strategic eye to apparel.
Expanding its apparel offerings, Nike announced a partnership with Kim Kardashian’s Skims brand in February and expects the first collection to drop this spring.
Editor's note: This story has been updated to include additional information on Nike's plans for Hoke's successor.
