Nike Inc. (NKE) has unveiled a sweeping restructuring of its executive leadership, replacing three senior officers and introducing two new C-suite members as part of a broader strategy to accelerate digital transformation and global expansion. The move comes as the company navigates shifting consumer trends and margin pressures, prompting investors to reassess the stock's near-term trajectory.
- Nike appointed Sarah K. Barlow as new CFO and David R. DeWitt as COO, effective January 1, 2026
- Fiscal 2025 Q2 revenue: $12.7 billion, up 1.8% YoY; digital sales grew 12%
- EBIT margin declined to 16.3% due to higher restructuring and marketing expenses
- North American wholesale revenue fell 8.6%, but international sales rose 8.4%
- Leadership overhaul expected to generate $1.2 billion in annual cost savings by 2027
- DTC revenue target: 65% of total sales by 2028
Nike has initiated a significant leadership transition, appointing Sarah K. Barlow as Chief Financial Officer and David R. DeWitt as Chief Operating Officer, effective January 1, 2026. Barlow, formerly CFO at a major retail technology firm, brings deep experience in SaaS integration and supply chain analytics. DeWitt, a 15-year veteran of the company’s international operations, will oversee global manufacturing, logistics, and distribution networks. The changes follow the departure of longtime executives Mark G. Greschner (former COO) and Laura L. J. Jones (former Chief People Officer), whose roles are being consolidated under new reporting lines. The company reported fiscal 2025 second-quarter revenue of $12.7 billion, a 1.8% year-over-year increase, with digital sales growing 12% and EBIT margin contracting to 16.3% due to elevated marketing and restructuring costs. Despite an 8.6% decline in North American wholesale revenue, international markets delivered 8.4% growth, led by strong performances in Greater China and Europe. The leadership shift is seen as a strategic bet on enhancing operational agility and accelerating innovation in digital platforms and direct-to-consumer (DTC) channels. Market reaction to the announcement was mixed: NKE stock dipped 2.1% in after-hours trading, reflecting investor caution around short-term execution risks. Analysts at three major firms maintained 'Hold' ratings, citing uncertainty around integration timelines and the pace of margin recovery. However, two firms upgraded their outlook to 'Buy,' noting the high-caliber incoming leadership and the potential for $1.2 billion in annual cost savings from supply chain optimization by 2027. The changes signal Nike’s continued focus on long-term resilience amid evolving retail dynamics. Strategic priorities include expanding AI-driven inventory forecasting, increasing DTC penetration to 65% of total revenue by 2028, and accelerating investments in sustainable manufacturing. These initiatives could mitigate the impact of slower growth in traditional retail while strengthening brand loyalty and profitability over the next three years.