Shoemaker Nike Inc.(NYSE: NKE) is accelerating its transformation to a technology company by hiring former eBay (NASDAQ:EBAY) head John Donahoe to be its next Chief Executive Officer (CEO).
Donahoe will replace current Nike CEO Mark Parker next year in the biggest sign yet that Nike wants to be a technology business. Like coffee chain Starbucks Corp. (NASDAQ:SBUX), which hired a Silicon Valley veteran as CEO, Nike is joining a parade of retail companies remaking their image and moving into digital platforms.
Nike has told investors that its focus going forward will be on e-commerce and apps. Donahoe takes over as CEO on January 13 with the goal of building the percentage of Nike sales that are online to 30% from 15% currently.
For his part, Parker will remain at Nike in charge of the Board of Directors as its Executive Chairman. The 40-year Nike veteran also plans to stay closely involved with product design. Donahoe has served on Nike’s Board since 2014. He’s currently CEO of ServiceNow Inc., and chairman of PayPal Holdings Inc. Donahoe previously served as CEO of eBay.
Nike’s stock price is up 29% so far this year.
