Nike's hard-hit shares rallied Friday as Wall Street analysts largely welcomed the company's appointment of veteran executive Elliott Hill as its new CEO.

The hedge fund billionaire Bill Ackman has bet big on the iconic American brand. His firm, Pershing Square, acquired three million shares, or 0.2 percent, of Nike this spring. His stake is currently worth about $250 million.

Nike (NKE) reported fiscal first quarter earnings that were mixed as Wall Street awaits more details on its CEO transition and turnaround strategy. The shoe giant reported first quarter earnings per share of $0.

Nike is in a reset after critics say it lost sight of innovation and ceded share to competitors. Its CEO John Donahoe is slated to step down this month.