Nike (NKE) continues to shake-up its executive ranks, announcing a new head of its North America operations, the sneaker company’s biggest market.
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Nike has tapped company insider Tom Peddie to lead its North America business going forward. As of Oct. 21, Peddie will become vice president and general manager of Nike’s North America region, succeeding Scott Uzzell, who is leaving the athletic apparel giant.
New Leadership at Nike
News of the North America head comes days before Nike’s new CEO Elliott Hill takes the helm of the company, replacing current Chief Executive Officer John Donahoe, who is retiring. Hill and Peddie have each worked at Nike for decades.
In Peddie’s case, he has spent 30 years at Nike and previously ran global sales, emerging markets, and wholesale partnerships. In his new role, Peddie will lead Nike’s North America operations, including marketing, digital growth, and sales.
Revitalizing the Nike Brand
The change in executive ranks comes as Nike tries to revitalize its brand and stock following years of earnings underperformance. New CEO Hill is tasked with rebuilding Nike’s wholesale channels and product line after a costly shift during the pandemic to selling Nike sneakers and other products directly through the company’s online channels and branded stores.
Analysts say Nike’s running shoes have lost their edge and market share to upstart competitors such as Deckers Outdoor (DECK) and On Holding (ONON). In a recent note to clients, Piper Sandler (PIPR) analyst Anna Andreeva wrote, “…hiring Hill is the first step of rebuilding (Nike’s) brand culture.” NKE stock has declined 24% so far this year.
Is NKE Stock a Buy?
Nike stock has a consensus Moderate Buy rating among 28 Wall Street analysts. This rating is based on 13 Buy and 15 Hold recommendations made in the last three months. The average NKE price target of $92.72 implies 13.23% upside from current levels.
