Heidi O’Neill, a 28-year Nike veteran, became chief executive of Lululemon on September 8, taking over a company that has struggled with slowing North American sales and public criticism from its own founder.
O’Neill’s appointment was announced in April, giving the company months to plan the transition before she formally started and joined Lululemon’s board. She replaces Calvin McDonald, who stepped down earlier this year amid softening sales and repeated public criticism from founder Chip Wilson. Co-chief executives Meghan Frank and Andre Maestrini, who ran the company on an interim basis, are returning to their prior roles as chief financial officer and chief commercial officer.
At Nike, O’Neill rose to president of consumer, product and brand, a role in which she oversaw global product strategy, brand direction, digital commerce and operations across more than 170 countries. She left Nike last year during a restructuring under chief executive Elliott Hill, and had earlier held roles at Levi Strauss, Hyatt Hotels and Spotify.
Investors gave the appointment a cool reception. Lululemon shares fell more than 5% in after-hours trading when the hire was first announced in April, with some analysts questioning whether another executive steeped in Nike’s playbook is the right fix for a retailer facing intensifying competition from newer athletic-wear brands and a slowdown in its core North American market.
O’Neill inherits a company still contending with the fallout from Wilson’s public criticism of Lululemon’s product design and marketing, as well as pressure to reaccelerate growth outside its established markets. Her early priorities as chief executive have not yet been detailed publicly.
Sources: CNBC · Retail Dive
