Lululemon Athletica Inc. has decided to appoint a former Nike executive to lead the company following a period of criticism regarding its management and performance. The Vancouver-based athleisure retailer revealed that Heidi O’Neill will take over as the new chief executive officer on September 8 and will also join the board. She was selected for her track record of delivering innovative ideas and initiatives at scale, as well as her expertise in driving change and growth.
According to Lululemon’s executive board chair Marti Morfitt, O’Neill is recognized as an inspiring leader and a skilled brand strategist who can envision a brand’s future and implement the necessary structures to achieve that vision. O’Neill’s appointment comes at a challenging time for Lululemon, which has been facing stiff competition and pressure from various fronts, including the company’s declining stock value and concerns about its product range.
Shareholders, including Lululemon’s founder Chip Wilson, had been urging the company to refresh its board to better address these challenges. Wilson advocated for the appointment of new board members such as Marc Maurer, Laura Gentile, and Eric Hirshberg. After the announcement of O’Neill’s appointment, Wilson’s spokesperson did not provide immediate feedback.
O’Neill’s arrival follows the departure of former CEO Calvin McDonald, who stepped down in December, leading to Meghan Frank and André Maestrini taking on the roles of interim co-CEOs. They will resume their previous executive responsibilities once O’Neill assumes her position. Lululemon highlighted O’Neill’s significant contributions to Nike’s growth and her experience in marketing at Levi Strauss & Co. and serving on the boards of Spotify Technology and Hyatt Hotels.
O’Neill expressed her enthusiasm for joining Lululemon, describing it as an iconic brand with a strong foundation of customer loyalty, innovative products, and global growth potential. She aims to drive product innovation, enhance the brand’s cultural relevance, and expand market presence worldwide.
While O’Neill was not initially recommended by Wilson, the company opted for her appointment over Wilson’s suggestions. Neil Saunders, managing director of consulting firm GlobalData, views O’Neill as a safe choice with a background in activewear and customer-centric companies. He believes she can bring the required energy to revitalize Lululemon and position it as a leader in product innovation once again.
