Lululemon Athletica Inc. has named Heidi O’Neill, a former Nike executive, as its new CEO following a period of criticism about the company’s management and performance. O’Neill will take on the role starting September 8 and will also join the company’s board.
The decision to appoint O’Neill was based on her track record of delivering innovative ideas and initiatives at a large scale, along with her expertise in driving change and growth. Lululemon’s executive board chair, Marti Morfitt, praised O’Neill as an inspiring leader and brand strategist who can envision the future of a brand and execute on that vision.
O’Neill’s appointment comes at a challenging time for Lululemon as it faces increased competition and pressure from shareholders, including the company’s estranged founder Chip Wilson, who advocated for new board members to address these issues. Wilson had recommended several individuals for the board, but it is unclear how O’Neill’s appointment will impact his stance.
Previously, Lululemon CEO Calvin McDonald had announced his departure, leading to interim co-CEOs taking over until O’Neill assumes her position. O’Neill is credited with playing a key role in the growth of Nike and has experience in marketing and serving on the boards of other prominent companies.
In her statement, O’Neill expressed her excitement to lead Lululemon, emphasizing the brand’s strong customer base, innovative product ethos, and global growth potential. Analysts view O’Neill’s appointment as a safe choice given the need for cultural change within the company to drive improved performance.
Despite recent challenges, Lululemon remains a strong business with growth potential, and O’Neill’s experience is seen as vital in driving innovation and restoring the company’s position as a leader in the activewear market.