Lululemon names new product executive as supply chief departs

By Suzanne Kapner Lululemon Athletic's new CEO is shaking up management as the retailer struggles with slumping sales and a stock price that is down more than 50% this year. In one of her first major moves since becoming CEO last month, Heidi O'Neill ousted two executives, created two new positions and hired former Nike and Walmart executives to fill them. The goal is to get various departments to work together collaboratively to create more compelling products that are designed and produced faster. "We are establishing a deeply experienced leadership team that will work in a more coordinated manner," O'Neill said in a press release. O'Neill, who left Nike to take the CEO job at Lululemon, is facing an uphill climb. The Vancouver, British Columbia, company has stumbled more recently after several product misfires and heated competition from newer rivals like Alo Yoga and Vuori. Sales slipped, and its stock plunged. The stock is now on pace for its worst year since 2008. Turning around a major retailer can take a long time. Nike and Under Armour have been struggling for years, after losing their perches as dominant athletic brands. And the easy growth during the pandemic, when everyone was buying leggings and other comfy clothes, has receded. Analysts and investors are skeptical that O'Neill--who spent 25 years at Nike, most recently as president of consumer, product and brand--is the right person to snap Lululemon out of its malaise. On the day of her appointment in April, Lululemon's stock fell 13%. More recently, some analysts have said that Lululemon's problems are fixable under its new leadership. On O'Neill's watch, Nike cut partnerships with retailers such as Macy's and Designer Brands' DSW to focus on selling directly to consumers, an approach that analysts say contributed to Nike's current struggles. Because of a noncompete agreement, O'Neill was unable to start her new job until Sept. 8. In the intervening period, the company's problems worsened. Net revenue fell 4% in its recent quarter. The hires: Maggie Gauger was named president and chief product officer. She previously spent about a year trying to turn around Athleta as president and CEO of the Gap Inc.-owned chain with limited results. Before that she spent more than two decades at Nike, most recently as vice president and general manager of the North American women's business. Joseph Godsey will be the chief operating officer. He most recently was Walmart Canada's chief growth officer and previously spent 14 years at Adidas in supply chain and other roles. The departures: Nikki Neuburger, chief brand and product activation officer, and Ted Dagnese, the chief supply-chain officer, will leave the company on November 6. Lululemon is also searching for a chief brand officer, chief technology officer and chief communications officer. Write to Suzanne Kapner at suzanne.kapner@wsj.com (END) Dow Jones Newswires October 07, 2026 16:01 ET (20:01 GMT) Copyright (c) 2026 Dow