A leadership change is underway at Nike ( NKE ) as current CEO John Donahoe steps down, and longtime veteran Elliott Hill takes the helm, the company said on Thursday. Shares of Nike jumped by over 7% in after-hours trading following the announcement.

Donahoe will retire on Oct. 13, with Hill, who is coming out of retirement, taking over the the next day. Donahoe, who steered the company through the Covid-19 pandemic and the Summer 2024 Paris Olympics , will remain as an advisor until Jan. 31, 2025.

In response to his new role, Hill said that “Nike has always been a core part of who I am.” He stated that he is “eager to reconnect” with colleagues and “build new relationships” to drive the company forward. He expressed his commitment to deliver “bold, innovative products” that resonate with consumers.

Mark Parker, Nike’s executive chairman, said Hill’s “leadership style” and “passion for sport” make him the ideal choice to guide the company’s next phase of growth.

Hill previously held senior leadership roles across Europe and North America, including overseeing commercial and marketing operations for both Nike and the Jordan Brand before his retirement in 2020. During his tenure, he played a key role in growing the business to more than $39 billion in annual revenue.

Donahoe reflected on his time at Nike and said that “it became clear now was the time to make a leadership change, and Elliott is the right person.”

The leadership shake-up comes as Nike seeks to regain momentum and address the shifting landscape of the athletic footwear market, which has seen increased competition from brands like Hoka and Skechers . In June, Nike said it would need to reassess its fiscal 2025 outlook as it braced for lower digital growth, a decline in classic footwear trends, shifting consumer demand, and macro-economic challenges.

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