Elliott Hill, the newly named chief executive officer of Nike Inc., acknowledged that things have been rough for the world’s largest sportswear brand in his first message to staff on Thursday.

Nike has pulled longtime company veteran Elliott Hill out of retirement to serve as president and chief executive, replacing CEO John Donahoe.

To welcome him back into the fold, Nike offered Hill a total compensation package valued at $27 million. That includes equity and cash awards valued at $7 million to make him whol

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,

Nike announced plans to toss out its president and CEO John Donahoe, as demand falters for the brand's sneakers.He'll be replaced by former senior executive Elliott Hill, who will take over next month.

Nike’s beleaguered stock was rising sharply after the company announced that its CEO would retire.The athletic shoe and apparel maker has been hurt in recent years from a slowdown in China and competition from upstarts like Deckers Outdoor’s Hoka brand and On Holding.

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.