Bloomberg News reported on Friday that long-time Nike (NYSE:) executive Thomas Clarke will take on a senior advisor role to CEO John Donahoe.
Clarke, who has been with Nike since 1980 and recently served as the President of Innovation, will begin his new role this week, focusing on growth initiatives.
John Hoke, a veteran of the company for 30 years, will succeed Clarke in his previous position.
Nike has confirmed the role changes for both executives.
“While this could be viewed as a step in the right direction, we think there remains an ample amount of wood to chop for this executive team, and all eyes are on Mr. Donahoe to right the ship,” Jefferies analysts said in a note.
The investment bank reiterated a Hold rating on the stock and trimmed the price target from $90 to $80.
“We expect NKE’s top line to continue to be pressured, due to increased competition, macro pressures on its consumers, and a softer customer reception to new products,” analysts added.
Jefferies suggests that Nike’s management should consider revisiting its long-term guidance and potentially updating it before the Analyst Day at the end of November. They believe that such an adjustment would be well-received and would enable investors to concentrate on the company’s distribution and innovation plans during the Analyst Day.
Nike has faced mounting pressure to improve performance as its stock declines and sales drop. In response, the apparel and footwear giant has brought back a retired executive to manage retail relationships, which have deteriorated during Donahoe’s four-year tenure due to the company’s shift in product distribution from retailers like Foot Locker Inc. to its own channels.
Thomas Clarke has held numerous positions at Nike, beginning as director of biomechanics research and advancing to chief operating officer, according to the company’s website. He also previously served on the board.
In a memo, Donahoe stated that Clarke’s extensive experience and deep understanding of the brand make him “uniquely positioned to help us during this pivotal point.”