New CEO Alert at Nike and Sales Plummet.

Nike faces a major shakeup with competitors and its own strategy mistakes.

The shoe giant announced on Thursdays that its CEO, John Donahoe, will be retiring this month, and Elliott Hill, a Veteran former Nike executive, will be replacing him.

Nike stock rose by 9% during after-hours trading Thursday. Nike has seen a total of 24% drop since this year. The shoe company faces consumer slowdown from competitors like Hoka and On. Consumers are changing their desires from expensive sneakers to everyday experiences such as concerts and travel.

Investors and analysts have been clamouring for change, the CEO change is welcomed.

During the first quarter, the company’s sales were flat, and retailers predict it will drop another 10% in the next quarter. Additionally, Nike has been criticized for a lack of innovation in its sneakers.

Nike “turned more lax on product innovation, particularly in running, as up-and-coming brands started to resonate,” Brian Nagel, an analyst at Oppenheimer, said in a note to clients Wednesday.

Nagel stated on Thursday that the selection of Hills “signals a much more significant commitment” from Nike’s board.

Meanwhile,  the company’s efforts in its distribution and marketing strategy have backfired. The company’s attempt to cut down on retailers and sell, especially on its online website, didn’t go as planned. Nike has said that it can make more profit selling goods on its online website and its physical stores than it can with wholesale partners.

But the change came to sudden and hurt sales instead. Nike brought back some retailers it initially cut out. “Nike took it too far and underestimated the importance of third-party retailers,” Neil Saunders, an analyst at GlobalData Retail, said in a note to clients in June.

But Nike isn’t the only shoe gaint under this pressure as Lululemon and Under Armour are having stock drop too. Lululemon experienced a stock drop of 46%, and Under Armour shares have lost 8%.