Lululemon Hires Former Nike Exec as CEO

lululemon athletica inc. (Vancouver, B.C.) announced the hiring of Heidi O’Neill as the company’s next CEO. O’Neill, a veteran of Nike and the Dockers brand at Levi Strauss & Co, will assume her now role Sept. 8.

O’Neill “arrives with a series of fires to put out,” Business of Fashion noted in its coverage of her hiring. “Recent product mishaps, including selling leggings that were see-through, and a disappointing sales outlook, have left investors concerned that the company can pull itself out of a rut. Sales growth has slowed since losing share to trendier competitors.”

The retailer has also faced ongoing criticism from Chip Kelly, who founded the brand and is still a major shareholder. Though no longer active in the company’s operations, he has called for a shakeup to the board before it hired its next top officer, and O’Neill was not on the list of potential hires Wilson provided to the board. As of this posting, Kelly had not responded publicly to O’Neill’s hiring.

Marti Morfitt, Executive Chair of lululemon’s board, said O’Neill “is the right next leader to propel lululemon forward. We selected Heidi because of the breadth of her experience, her demonstrated success delivering breakthrough ideas and initiatives at scale, and her ability to be a knowledgeable change and growth agent.”

Said O’Neill, whose role as President of Consumer, Product and Brand was eliminated at Nike last year as part of an ongoing restructuring there: “lululemon is an iconic brand with something rare: genuine guest love, a product ethos rooted in innovation, and a global platform still in the early stages of its potential. As I step into the CEO 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.”

The search for a permanent began late last year, when Calvin McDonald exited the company. Since then, Meghan Frank and André Maestrini have led the company interim co-CEOs; when O’Neill come on board, they will return to their previous senior leadership roles at the retailer.