Lululemon Taps Nike Veteran to Reverse North American Slump
Lululemon Athletica has appointed Heidi O'Neill as its new CEO, effective September 8. The move comes at a time when the company is grappling with a slump in North American sales and a decline in gross margin due to promotional activity and tariff-related costs.
O'Neill's background is in product development and consumer strategy, having spent nearly three decades at Nike (NKE). She will aim to reignite enthusiasm for new styles without resorting to aggressive markdowns. The company has already cut North American store SKU counts by 15%, a move designed to give fresh merchandise more shelf space.
Asia has emerged as Lululemon's most reliable growth engine, with mainland China revenue jumping 30% in the fiscal first quarter. The company has reinforced its commitment to the region by opening a large Asia-Pacific store in Tokyo and consolidating its China and APAC operations under a single regional leadership structure.
The transition comes amid board-level maneuvering, including the appointment of two new directors with product-focused expertise. Institutional investors and hedge funds collectively control 85.2% of outstanding shares, and Wall Street sentiment remains cautious, with analysts downgrading their price targets in recent weeks.