Shares of Nike (NKE) are rallying after the company announced that CEO John Donahoe will be stepping down next month after a rocky five years at the company. Nike veteran Elliott Hill will come out of retirement to fill the role of CEO and president effective October 14.

Sept 20 (Reuters) - Nike's new CEO is expected to double down on the company's efforts to repair relations with retailers to energize sales, reversing a strategy under outgoing chief John Donahoe that focused on selling directly through its stores and website.

Company veteran Elliott Hill will lead a turnaround effort at the global sportswear giant, where sales have faltered and innovation has stalled.

Elliott Hill will replace John Donahoe as chief executive next month, following months of struggles for the athletic-wear giant.

(Reuters) - Nike's new CEO will likely focus on repairing relations with retailers to boost demand, a strategy that took a back seat under outgoing chief John Donahoe, industry experts said on Friday.

Nike said Thursday that its president and CEO John Donahoe is retiring and will be replaced by a former senior executive, Elliott Hill. Why it matters: The sportswear giant warned in June of flagging sales and Axios' Hope King noted then that Nike's innovation and distribution strategies had struggled to win budget-conscious consumers or beat back growing competition.

Nike stock surged Thursday after the company announced CEO John Donahoe was retiring, to be replaced by former Nike executive Elliott Hill. Donahoe will be stepping down Oct. 13, and will remain an advisor to the company through Jan.