Lululemon, the yoga pants and athletic clothes firm, has employed a former govt from a rival, Nike, as its new chief govt.
Heidi O’Neill, who spent greater than 25 years at Nike, will take the reins and be a part of Lululemon’s board of administrators on Sept. 8, the corporate introduced on Wednesday.
The management change is occurring throughout a tumultuous time for Lululemon, which had grown to $11 billion in income by persuading buyers to ditch their denims and slacks for stretchy leggings. But recently, gross sales have declined in North America amid intense competitors and shifting style tendencies, with customers favoring looser types reasonably than the form-fitting silhouettes for which Lululemon is greatest identified.
“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, stated in an announcement.
Lululemon, based mostly in Vancouver, British Columbia, has additionally been entangled in a company energy battle over the corporate’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated impartial administrators and criticized executives.
Lululemon’s earlier chief govt, Calvin McDonald, stepped down on the finish of January as stress mounted from Mr. Wilson and a few traders. One activist investor, Elliott Investment Management, had pushed its personal chief govt candidate, who was not chosen.
The interim co-chiefs, Meghan Frank and André Maestrini, will lead the corporate till Ms. O’Neill’s arrival, when they’re anticipated to return to different senior roles. The pair had outlined a plan to revive gross sales at Lululemon, promising to spend money on shops, save extra money and velocity up product growth.
“We start the year with a real plan, with real strategies,” Mr. Maestrini stated in an interview this 12 months. “We make sure decisions are made fast.”
Lululemon stated final month that it could add Chip Bergh, the previous chief govt of Levi Strauss, to its board to exchange David Mussafer, the chairman of the personal fairness agency Advent International, whom Mr. Wilson had sought to take away.
Ms. O’Neill climbed the organizational chart at Nike for many years, working throughout divisions together with shopper sports activities, product innovation and model advertising, and was most just lately its president of shopper, product and model. She left Nike final 12 months amid a shake-up of senior administration that led to the elimination of her position.
Analysts stated Ms. O’Neill could be anticipated to seek out methods to energise Lululemon’s enterprise and reset the corporate’s tradition with a purpose to enhance efficiency.
“O’Neill is her own person who will come with an agenda of change,” stated Neil Saunders, the managing director of GlobalData, a knowledge analytics and consulting firm. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”
