Nike’s board announced the abrupt retirement of its chief executive, John Donahoequickwin, on Thursday, amid merchandising struggles and a falling stock price. Elliott Hill, who retired from the company in 2020, will return as a chief executive next month.

Analysts say the leadership shake-up could help Nike return to what makes it special: its product innovation and marketing prowess.

Mr. Donahoe, the company’s chief executive since January 2020, helped navigate Nike through the disruption of the Covid-19 pandemic, the growth of e-commerce and supply chain bottlenecks. But he wasn’t seen as an innovator and marketer, key qualities in a company that combines performance and style.

Mr. Hill spent more than 32 years with the shoe brand after starting as an intern in 1988. During his tenure he worked across departments and in both North America and Europe. Before retiring he oversaw commercial and marketing operations for Nike and the Jordan Brand.

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Over the past few years, Nike had become more focused on building direct selling channels rather than developing new products, analysts say.

Simeon Siegel, a retail analyst at BMO Capital Markets, said Nike’s “magic” was that it was the largest player in the sneaker category, with a huge marketing budget.

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