Nike Announces Sweeping Leadership Overhaul to Revive Growth

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In a decisive move to address faltering sales, Nike CEO Elliott Hill is implementing a radical restructuring of the sportswear giant's top management. The company is replacing the leaders of three out of its four primary geographic divisions, with a particular focus on revitalizing its struggling Greater China business.

The leadership changes come against a backdrop of mixed financial results. For the second quarter of fiscal 2026, Nike reported a modest 1% increase in total revenue to $12.4 billion. This figure, however, masks significant regional disparities and pressures. North America delivered a strong 9% growth, but this was offset by pronounced weaknesses elsewhere.

The Greater China region saw revenue plummet by 17%, marking the sixth consecutive quarter of declining footwear sales in the area. Subsidiary brand Converse experienced a severe 30% drop in revenue, and sales through the NIKE Direct channel fell by 8%. Furthermore, the company's gross margin contracted by 300 basis points to 40.6%, indicating substantial pricing and cost pressures.

Strategic Appointments Target Key Markets

The reshuffle introduces seasoned company veterans to critical roles. Effective February 2, 2026, César Garcia will assume the position of Vice President and General Manager for Europe, the Middle East, and Africa (EMEA). A 25-year Nike veteran, Garcia most recently oversaw merchandising and global analytics integration. He succeeds Carl Grebert, who is retiring after three decades with the firm.

The most significant change is arguably in the Asia-Pacific theater. Cathy Sparks is taking over as head of Greater China, replacing Angela Dong, who will depart the company on March 31. Sparks brings a quarter-century of Nike experience, having previously led the Asia Pacific and Latin America (APLA) region. Cristin Campbell, formerly responsible for the Nike brand in APLA, will step into the APLA leadership role on an interim basis.

China Operations in the Spotlight

The management shift in Asia coincides with a critical juncture for Nike's business in the region. CEO Hill has previously acknowledged that the pace of recovery will vary by geography, explicitly noting that China will require more time to turn around. The new appointment is a direct attempt to inject fresh leadership into this key market, which has become a primary concern for investors.

Part of a Broader Restructuring Plan

These regional leadership changes are not isolated events. They form a core component of Hill’s broader "Win Now" operational strategy, designed to immediately strengthen execution in vital markets. This follows a December restructuring that eliminated the Chief Technology Officer and Chief Commercial Officer positions at the corporate level.

The comprehensive overhaul underscores management's urgency to reinvigorate growth, stabilize margins, and address underperformance in specific segments and regions. The success of these new appointments will be closely watched as Nike navigates a complex global retail environment.