Nike said on Thursday that former senior executive Elliott Hill will rejoin the company to succeed John Donahoe as president and CEO, as the sportswear giant shakes up its top rank amid efforts to revive sales and battle rising competition.

The company's shares rose 9% in after-hours trading.

Hill was at Nike for 32 years and held senior leadership positions across Europe and North America and was responsible for helping expand the business to more than $39 billion, the company said.

He was previously Nike's president, consumer marketplace, leading all commercial and market operations for the Nike and Jordan brands before retiring in 2020.

Nike said in a regulatory filing that Hill's compensation as president and CEO will include an annual base salary of $1.5 million. Hill will take over as CEO on Oct. 14.

Analysts cheered the move. The CEO change "gives a positive signal because it is someone that knows the brand and knows the company very well," said Jessica Ramirez of Jane Hali & Associates.

Donahoe was tasked with bolstering Nike's online presence and driving sales through direct-to-consumer channels.

The push initially helped the company build on the demand for athletic and leisure wear following the pandemic, resulting in Nike touching more than $50 billion in annual sales in fiscal 2023 for the first time.

However, sales have since come under pressure and growth has slowed with LSEG expectations of Nike's annual sales at $48.87 billion for fiscal 2025 as inflation-weary customers cut back on discretionary spending and China's market rebounds more slowly than expected.

A lack of innovative and appealing products has also tripped demand for Nike as rival brands including

Roger Federer-backed On ONON.N and Deckers' Hoka DECK.N attract customers with products considered more fashionable and trendy.

Expectations for a change at the top were heightened after billionaire-investor William Ackman disclosed a stake in Nike. His Pershing Square Capital Management has continued to buy and now owns 16.3 million shares in Nike, a person familiar with the position said. Ackman was not immediately reachable for comment.

Hill's background as a former steward of Nike's valuable Jordan brand, a major profit-driver for the company, could also help the sportswear giant regain some momentum.

Some investors had in recent months been concerned that the Jordan brand, a major source of sales for Nike, was losing steam. The value of some Jordan shoes in 2023 had been slipping on the resale market as other sneaker brands, including On Running, experienced meteoric growth.