Why Nike Stock Is Running Higher Friday

Being in Nike (NKE 6.06%) stock hasn't exactly been a winning game in recent years. Shares of the iconic athletic shoe maker have badly trailed the returns of the S&P 500 index over the last decade.

But Nike shares are running higher today. After jumping nearly 9% Friday morning, as of 10:35 a.m. ET, the stock was still trading higher by 5.8%. That's because investors hope the stock's long-lasting slump is coming to an end with a CEO replacement.

Nike was a high-flying stock for years. But since Nike's last stock split, -- a 2-for-1 split on Dec. 24, 2015 -- its total return, which includes dividends, has been 41% compared to the S&P 500 index return of 225%.

But yesterday the company said it was replacing CEO John Donahoe with company veteran Elliott Hill effective Oct. 14. Hill worked at Nike for over three decades prior to retiring in 2020 after Donahoe was named CEO. Investors today think that change will be a good thing and aren't waiting to buy Nike stock.

The decision was approved by Donahoe himself. In a statement he said, "It became clear now was the time to make a leadership change, and Elliott is the right person. I look forward to seeing Nike and Elliott's future successes."

Hill was president of Nike's consumer division and oversaw marketing and commercial successes including the Michael Jordan brand before leaving the company. Investors are welcoming his return, as competitors including Deckers Outdoor's Hoka One One brand and On Holding have been taking market share.

Nike may give investors an idea of what Hill has planned when it reports its first-quarter fiscal 2025 financial results on Tuesday, Oct. 1.