Business
Nike Names New CFO as Sales Recovery Remains Slow
The footwear giant has turned to Pfizer executive David Denton to lead its finance function as Nike navigates a prolonged turnaround effort and grapples with sluggish sales in major markets
Key Highlights
- Nike has appointed Pfizer finance chief David Denton to replace the company’s departing CFO.
- Nike continues to struggle with demand and inventory problems.
- Upcoming quarterly results are expected to benefit from tariff refunds.
Nike has appointed Pfizer’s David Denton to become its new chief financial officer, succeeding Matthew Friend, as the sportswear giant seeks to restart growth despite supply chain issues and fierce competition.
The appointment takes effect on August 17. Denton has been Pfizer’s CFO since May 2022. The pharmaceutical company announced his departure on 18th June.
Nike has been dealing with elevated levels of inventory with weak demand in crucial markets like North America, and China. Senior executives in March admitted the company was turning around more slowly than it had hoped.
His pay package will include a base salary of $1.45 million, a target annual bonus of 120% of his base salary and a target long-term incentive award of $11.5 million, Nike said.
Chief Executive Officer Elliott Hill, who was appointed in October 2024, has focused on returning Nike’s product strategy to its athletic heritage while repairing bonds with wholesale customers.
Morningstar analyst David Swartz noted Nike has had a massive cleanup since Hill became chief executive and this reflects Nike’s challenges and the slower pace of its turnaround than investors would have liked.
He added that the CFO transition was disappointing but it does not necessarily mean a further decline in Nike’s business. Nike shares went up almost 1% in extended trading.
Nike said that its quarterly results are due on June 30, and it will likely be able to take advantage of the tariff refunds. Nike had earlier shared that it paid roughly $1 billion in tariffs on imports to the U.S.
Background
Denton was CFO of home improvement retailer Lowe’s before he joined Pfizer. He had spent over 20 years in senior finance roles at CVS Health.
Friend joined Nike in 2009 and held various roles for several of its businesses before being named CFO after 11 years.
Source: Reuters
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