Nike ( NKE ) appears to be find its footing under new CEO Elliott Hill, reporting second-quarter earnings on Thursday that were better than feared . Shares jumped over 9% in after-hours trading, offering a glimmer of hope after Nike’s had stock dropped 27% so far this year.

“Our priority is to return sport to the center of everything we do,” Hill said in a statement. “We’re taking immediate action to reposition our business, so we can get back to driving long-term shareholder value.”

Nike beat Wall Street’s expectations. During the second quarter, the company reported revenue of $12.35 billion, about 78 cents per share. Analysts had forecast it would generate revenue of $12.13 billion, or about 63 cents per share.

The global apparel giant has struggled to regain momentum amid growing competition from brands such as Hoka ( DECK ) and Skechers ( SKX ). In June, Nike warned it would need to reassess its fiscal 2025 outlook, citing slower digital growth, a decline in demand for classic footwear styles, shifting consumer preferences, and broader economic challenges.

Hill, a Nike veteran who started as an intern, is taking charge at a critical time . In addition to overhauling Nike’s product lineup, he said he plans to repair relationships with wholesalers and address internal issues , including boosting morale after a series of layoffs.

Analysts say that while change will take time , Hill is well-positioned lead Nike back to growth . Under his leadership, the company grew to more than $39 billion in annual revenue. In a research note, financial firm Jefferies ( JEF ) said Nike’s latest earnings exceeded its modest expectations but cautioned “there’s still a lot of wood to chop.”

To address declining sales, Nike has started scaling back production of overexposed models , including its Air Force 1s, Dunks, and Air Jordan 1s, which lost appeal due to over-saturation in the market.

Despite those struggles, Hill has secured some key victories. Nike recently renewed its contract with the National Football League, keeping its exclusive uniform deal through 2038 . The deal is a critical endorsement of Hill’s leadership after the NFL considered other bidders.

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