Nike Inc.’s decision to switch coaches is causing some agita among investors, but analysts saw the c-suite arrival of former eBay chief executive officer John Donahoe 2nd as a sign the company would accelerate its digital transformation.
Shares of Nike slipped 3.4 percent to $92.32 Tuesday following the surprise announcement Monday afternoon that Donahoe would become ceo in January as Mark Parker, ceo since 2006, would become executive chairman. Even with that stock decline, Nike ended the day with a market capitalization of $144 billion — easily making it one of the most-valuable fashion companies in the world.
Parker had some tough sledding in recent years. Nike brand president Trevor Edwards, once seemingly Parker’s heir apparent, left last year amid complaints of a locker room-like culture at the company and the firm’s Oregon Project elite running program was recently shut down amid questions of doping. (A source stressed that Parker has been working with the board for “many months” on a thoughtful transition and that his pending departure is not tied to Oregon Project.)
The stock is still near its all-time high following a steep run up in recent years, when the brand flexed its muscles and kept gaining share, profitably, as retailers struggled.
Things are getting turned upside down. Netflix has released a new teaser for Season 4 of the 1980s period piece sci-fi hit “Stranger Things,” which