Lululemon Overhauls C-Suite as New CEO Seeks Turnaround

Lululemon Athletica Inc. announced that former Athleta chief executive Maggie Gauger will join as president and chief product officer, and former Walmart Canada chief growth officer Joseph Godsey will become chief operating officer. Both roles start on October 26. The retailer also confirmed that chief brand and product activation officer Nikki Neuburger and chief supply chain officer Ted Dagnese will leave on November 6.

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The reshuffle follows a period of declining revenue and profitability. Lululemon’s second-quarter sales fell 4 % to $2.4 billion, with comparable sales down 12 % in the Americas and 3 % internationally, and net profit slipped 11.2 % to $329.2 million. After a proxy battle and criticism from founder Chip Wilson, the board installed former Nike executive Heidi O’Neill as CEO on September 8. Competitors such as Alo have intensified pressure on market share.

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• September 8 – Heidi O’Neill assumes the CEO role.

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• October 26 – Maggie Gauger and Joseph Godsey begin their newly created roles.

Lululemon Taps Ex-Nike Exec To Fix Product Woes

• November 6 – Nikki Neuburger and Ted Dagnese depart, agreeing to assist with transition.

EXEC: Lululemon Overhauls Leadership Team Structure

• Heidi O’Neill – CEO, former Nike executive.

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• Maggie Gauger – President and chief product officer; previously Athleta CEO.

CNBC

• Joseph Godsey – Chief operating officer; former Walmart Canada growth officer.

Lululemon Taps Ex-Nike Exec To Fix Product Woes

• Nikki Neuburger – Outgoing chief brand and product activation officer (joined 2020).

EXEC: Lululemon Overhauls Leadership Team Structure

• Ted Dagnese – Outgoing chief supply chain officer (since 2019).

EXEC: Lululemon Overhauls Leadership Team Structure

• Meghan Frank – CFO, now overseeing interim brand and technology functions.

EXEC: Lululemon Overhauls Leadership Team Structure

• Q2 revenue: $2.4 billion (-4 %).

The Globe and Mail (Toronto)

• Comparable sales: -12 % in the Americas, -3 % internationally.

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• Net profit: $329.2 million (-11.2 %).

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Heidi O’Neill’s release highlighted the creation of a “deeply experienced leadership team” focused on product, design and innovation. She said the new structure is intended to accelerate a stronger pipeline of differentiated products and improve the guest experience across stores and online. Lululemon is still searching for a chief brand officer, chief communications officer, chief technology officer and chief strategy officer, with CFO Meghan Frank handling interim responsibilities.

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• “Lululemon is a rare, extraordinary brand, but we have work to do to build a stronger and more competitive company,” — Heidi O’Neill, CEO

WWD

The company will continue recruiting for the vacant chief brand, communications, technology and strategy roles while monitoring the impact of the new product and operations leadership on upcoming collections. Analysts note that investor confidence will hinge on whether the revamped product pipeline translates into measurable sales growth and margin improvement in the next reporting periods.

EXEC: Lululemon Overhauls Leadership Team Structure