LULU
Lululemon Athletica Inc
Heidi O’Neill Named Lululemon CEO
Lululemon named Heidi O’Neill its new CEO as the athletic retailer looks to move beyond a turbulent period of slowing growth and investor unrest. O’Neill, most recently Nike’s President of Consumer, Product and Brand, will take over as permanent CEO on September 8. She spent 26 years at Nike and also held positions at Levi Strauss, Hyatt Hotels, and Spotify.
Her track record is a mixed bag. At Nike, she was considered an internal prospect to replace former CEO John Donahoe. But she played a key role in Nike’s ill-fated direct-to-consumer strategy, where the brand pulled back from wholesale partners in favor of its own stores and website — a plan that incoming Nike CEO Elliott Hill later reversed.
She steps into a tough situation. Lululemon has seen more than a year of disappointing performance, recent product mishaps including see-through leggings, and is currently embroiled in a proxy battle, with activist fund Elliott Investment Management holding a $1 billion-plus stake and founder Chip Wilson publicly criticizing the brand’s direction. O’Neill received unanimous board support , though analysts note the real test will be whether she can re-inject some edge into a brand that’s lost its footing.