Investment firm Pershing Square Inc. (NYSE:PS) founder Bill Ackman said Wednesday that Nike Inc.’s (NYSE:NKE) decision to add Deputy CEO of LVMH’s Moët Hennessy division Alexandre Arnault to its board was a “great development” for the retailer, which is working through a multiyear slump.

Nike ‘Needs Help’, Says Ackman

In a post on social media platform X, Ackman said he was a fan of Arnault and believed he could help the company, adding that “Nike needs help.”

Arnault, son of LVMH CEO Bernard Arnault, joins a board that already includes co-founder Phil Knight and Apple Inc. (NASDAQ:AAPL) chairman Tim Cook.

Arnault previously spent four years at Tiffany & Co., led LVMH’s acquisition and turnaround of RIMOWA as its CEO, and currently serves on LVMH’s board.

The Appointment Comes At a Difficult Time

Arnault joins the board as Nike struggles to gain traction on the “Win Now” turnaround plan CEO Elliott Hill introduced after taking the role in September 2024.

On Sept. 21, Nike will be removed from the S&P 100 index for the first time in 18 years.

The retailer’s biggest challenge remains its Nike Sportswear and Jordan Streetwear businesses, both of which posted double-digit sales declines in the fourth quarter of 2026, a trend management expects to persist through fiscal 2027 before improving in the back half of the year.

China has also been a persistent headwind for the company, with JPMorgan flagging last month that ending online sales distribution with partners Pou Sheng and Topsports next year will create an annualized revenue hit of more than $1 billion.

Shares Have Been on a Long Slide

Nike shares have fallen 43.84% year-to-date and 50.82% over the past year, part of a longer decline that’s seen the stock lose 77.3% of its value over the past five years.

Price Action: On Wednesday, the stock fell 1.21% to $35.78 and climbed 1.40% in early pre-market trading on Thursday.

Benzinga Edge rankings indicate Nike’s stock has a Momentum score in the 4th percentile and a Growth score in the 88th percentile.

See More: Top Momentum Stocks

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