Elliott Hill started at Nike as an intern in 1988 but steadily scaled its ranks, banking on values of grit and hard work ingrained in him as the son of a single mom in a working class Texas neighborhood.

The boss of Nike will step down next month, making way for a company veteran to take his place as the leader of the world's biggest sportswear company amid tough competition in the retail sector. In a statement, Nike said John Donahoe will retire on 13 October, staying on in an advisory role until early next year to "ensure a smooth transition".

In his first message to employees, Nike's new CEO, Elliot Hill, acknowledged that the company faces challenging times.

Elliott Hill started at Nike as an intern in 1988 but steadily scaled its ranks, banking on values of grit and hard work ingrained in him as the son of a single mom in a working class Texas neighborhood.

Nike on Thursday announced it would replace CEO John Donahoe with his former colleague, Elliott Hill, sending the stock soaring on the news. Hill, 60, is returning to Nike four years after retiring from the sneaker giant.

Nike says Elliott Hill will replace John Donahoe as CEO in October. Nike has struggled to turn around its business over the last year.

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.

The athletic giant announced Thursday that CEO John Donahoe will retire next month and will be replaced by Elliott Hill, a veteran former Nike executive. Nike’s stock rose 9% during after-hours trading Thursday,