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 announced 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 rose 9 percent in after-hours trading.

The company looks to shake things up as demand for its trainers falters in international markets.

Nike Inc. ousted beleaguered chief executive John Donahoe, bringing longtime executive Elliott Hill out of retirement to return the struggling athletic brand to its glory days.

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 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.

A leadership change is underway at Nike (NKE) as current CEO John Donahoe steps down, and longtime veteran Elliott Hill takes the helm, the company said on Thursday. Shares of Nike jumped by over 7% in after-hours trading following the announcement.