Nike said on Thursday that former senior executive Elliott Hill will rejoin the company to succeed John Donahoe as president and CEO, as the sportswear giant shakes up its top rank amid efforts to revive sales and battle rising competition.

The company’s shares were up 9% in extended trading.

Hill was at Nike for 32 years and held senior leadership positions across Europe and North America and was responsible for helping grow the business to more than $39 billion, the company said.

Hill previously was president, consumer marketplace at Nike, leading all commercial and market operations for Nike and Jordan brand, before retiring in 2020.

Nike said in a regulatory filing that Hill’s compensation as president and CEO will include an annual base salary of $1.5 million. Hill will take over as CEO on Oct. 14.

The CEO change “gives a positive signal because it is someone that knows the brand and knows the company very well,” Jane Hali & Associates analyst Jessica Ramirez said.

Donahoe was tasked with bolstering Nike’s online presence and drive sales through direct-to-consumer channels.

The push initially helped the company build on the demand for athleisure following the pandemic, resulting in Nike touching more than $50 billion in annual sales in fiscal 2023 for the first time.

However, sales have since come under pressure and growth has slowed with LSEG expectations of Nike’s annual sales at $48.87 billion for fiscal 2025 as inflation-weary customers cut back on discretionary spending and a slower-than-expected rebound in growth market China.

A lack of innovative and appealing products has also tripped demand for Nike as rival brands, including Roger Federer-backed On and Deckers’ Hoka, attract customers with their more fashionable and trendy products.

Expectations for a change at the top were heightened after billionaire-investor William Ackman disclosed a stake in Nike. Ackman has not commented on his plans for the company.