Analyst Talks Nike's Leadership Shuffle
Nike Inc (NYSE:NKE) announced Tuesday a handful of leadership changes, including a new CFO, COO, and president of consumer and marketplace. According to BMO Managing Director Simeon Siegel, Nike is demonstrating the strength of its management roster.
Despite multiple leadership changes, the only "new" high-ranking executive is John Donahoe who joined Nike as president and CEO in early 2020, Siegel said on Yahoo Finance's "On the Move." Nike does have a reputation for promoting executives from within so the latest move isn't anything new or surprising.
Nike's strength and advantages remain the same and a management change will be able to continue leveraging its scale and size, the analyst said. All the management team needs to do is keep focusing on what strategies work and remaining ahead of the competitive landscape, especially in terms of marketing and investments in the business.
Why It's Important
Nike is also showing an ability to stand out at a time when the coronavirus is forcing investors to sell shares of companies that aren't liked, he said. Encouragingly, investors are giving Nike "a pass" even though it derives a larger percentage of EBIT from China compared to rivals.
"At the end of the day, investors are owning Nike for the long-term and baring a prolonged epidemic, people would give it a pass," he said.
There is "no question" that Donahoe brings a strong level of experience in digital and technology and this focus will likely remain an ongoing focus moving forward, Siegel said.
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