Nike (NYSE) announced the upcoming transition of CEO John Donahoe, to be replaced by Elliott Hill, a long-time Nike executive, sparking a 7.6% postmarket rally. Analysts from Morgan Stanley noted that while the move wasn’t surprising due to Nike’s recent profit volatility and strategic uncertainty, they expect a full-year guidance cut on October 1. Despite investor optimism, Jefferies warns Hill faces challenges such as rising competition and evolving market trends. Nike’s stock has lagged behind Adidas and Under Armour over the past year, though it outperformed Lululemon.
