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Nike reshuffles leadership team, EVP of sports marketing to retire

Published 30/10/2024, 20:58
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NKE
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BEAVERTON, Ore. - Nike Inc. (NYSE: NYSE:NKE) has announced a reshuffling of its Senior Leadership Team, with the retirement of John Slusher, the company's Executive Vice President of Global Sports Marketing, and the appointment of Ann Miller to the position. Slusher, who has been with Nike for 26 years, will retire later this year, marking the end of a notable tenure that saw Nike's sports marketing reach new heights.

Miller, who has nearly 18 years of experience within Nike and currently serves as the Executive Vice President, Chief Legal Officer, will take over from Slusher. Elliott Hill, President & CEO of Nike, praised Miller's "unique blend of athlete mindset, deep legal expertise, and exceptional leadership." He expressed confidence in her ability to "inspire, innovate, and push the boundaries of what's possible" in her new role.

The strategic realignment is part of Nike's ongoing effort to prioritize putting sport and athletes at the forefront of its business. Miller will be responsible for leading and growing the company's athlete, league, and federation portfolio and ensuring the integration of athletes across innovation, product, and storytelling.

In addition to Miller's appointment, Rob Leinwand, currently Vice President, Deputy General Counsel, will succeed Miller as Executive Vice President, Chief Legal Officer. Leinwand, who joined Nike in 2004, has been recognized for his excellence in legal work for the company and will now become a member of the Senior Leadership Team.

Furthermore, as part of Nike's focus on speed and efficiency, Venkatesh Alagirisamy, Chief Supply Chain Officer and an 18-year veteran at Nike, will report directly to Hill and join the Senior Leadership Team.

The company's leadership changes are set against the backdrop of Nike's status as a global leader in the design, marketing, and distribution of athletic footwear, apparel, and equipment. This news is based on a press release statement from Nike, Inc.

In other recent news, Nike has seen a series of significant developments. The company has extended its global partnership with the NBA, WNBA, and the NBA G League until 2035, reinforcing its position as the exclusive on-court uniform and apparel provider. This move follows the appointment of Elliott Hill as the new CEO, a decision met with optimism by UBS, despite an expected 18-24 month period before significant improvements are seen.

Bernstein SocGen Group has maintained an Outperform rating on Nike, despite mixed reception of its product franchises. The Pegasus 41, part of Nike's assortment overhaul, received a positive reception, while franchises like Jordan and Dunk have seen slower releases and declining interest.

In terms of financial performance, Truist Securities upgraded its rating from Hold to Buy, citing confidence in Nike's strategic initiatives and leadership. However, HSBC (LON:HSBA) maintained a Hold rating due to concerns about the company's product innovation and distribution strategies. BofA Securities kept a Buy rating, expecting strong sales despite an anticipated 8-10% revenue decline in the second quarter. These are among the recent developments shaping the conversation around Nike.

InvestingPro Insights

As Nike reshuffles its senior leadership team, investors might be curious about the company's current financial standing and future prospects. According to InvestingPro data, Nike's market capitalization stands at $113.93 billion, reflecting its position as a prominent player in the Textiles, Apparel & Luxury Goods industry.

Despite the recent leadership changes, Nike faces some challenges. InvestingPro Tips indicate that 19 analysts have revised their earnings downwards for the upcoming period, and the company's revenue is expected to decline in the current year. This aligns with the reported revenue growth of -2.83% over the last twelve months, suggesting a potentially challenging near-term environment.

However, Nike's financial foundation remains solid. The company operates with a moderate level of debt, and its liquid assets exceed short-term obligations. This financial stability is further underscored by Nike's impressive dividend track record. An InvestingPro Tip highlights that Nike has raised its dividend for 22 consecutive years and has maintained dividend payments for 41 years straight. With a current dividend yield of 1.89%, Nike continues to reward its shareholders despite market headwinds.

The company's P/E ratio of 21.85 suggests that investors are still willing to pay a premium for Nike's stock, possibly due to its strong brand and market position. However, another InvestingPro Tip cautions that Nike is trading at a high P/E ratio relative to its near-term earnings growth, which investors should consider in their valuation assessments.

For those interested in a deeper dive into Nike's financials and future outlook, InvestingPro offers 12 additional tips that could provide valuable insights for investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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