Footwear Insight

What to Watch in 2020: Athletic Leadership Changes ANALYSIS THE FOOTWEAR EYE 6 • Footwear Insight ~ November/December 2019 footwearinsight.com T he athletic footwear world is ending 2019 in an inter- esting place. In a year of seemingly unprece- dented C-suite turnover across industries, three of the biggest athletic firms in the world announced that they would be starting 2020 with new leadership in top spots. On Oct. 21, German athletic giant Adidas said that its Global Brands Director, American Eric Liedtke, would be stepping down at year's end. The next day, on Oct. 22, Under Armour founder and CEO Kevin Plank announced that he, too, would be stepping back, although he still plans to serve as executive chairman and brand chief. The same day, Nike issued a release saying that longtime CEO, Chairman and President Mark Parker — who had been expected to stay on with the company beyond 2020 per earlier announcements — would be replaced as President and CEO by board member John Donahoe and would remain the executive chairman. On one hand, each brand is facing its own particular circumstance: Adidas has seen supply chain issues but in its most recent earnings said it was poised for growth and would meet its 2019 expectations. Sales at Nike, the world's largest athletic brand, have continued to be strong, but 2018 saw a major shakeup in its ranks with major departures (including potential Parker suc- cessor Trevor Edwards) after allegations of gender-based discrimination spurred multiple lawsuits. This year, the brand shut down its long-vaunted Nike Oregon Project running club after head coach Alberto Salazar was served with a 4-year ban from running for doping violations, and has even more recently faced accusations that the Oregon Project culture was toxic to the women within it. But even with the individual narratives shaping each company's changeover, the industry as a whole is prime for change en masse, NPD analyst Matt Powell said. "I think the bottom line is that the indus- try is really going through some massive changes now," he said. "with the rise of direct-to-consumer and its importance, and the rationalization of retail will continue, and most importantly the athleisure shift." The new leaders at all three firms, he said, will be contending with a radically altered marketplace. It's already been suggested that Nike's appointment of Donahoe — an digital world vet who has done stints at eBay and ServiceNow — is a bid to move even more aggressively into direct-to-consumer and e-commerce. "The bottom line is that the industry has not fully embraced and adapted to the systemic changes," Powell said. "The old rules we lived under no longer apply; brands have to operate differently." — Jennifer Ernst Beaudry Nike chairman and president Mark Parker, left, is being replaced by John Donahoe, right. Under Armour founder Kevin Plank is stepping away from his role as CEO at the company. Eric Liedtke is stepping down at Adidas. Three of the biggest athletic firms in the world will have new faces leading the charge in 2020.

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