Lululemon is betting its turnaround on a veteran of one its rivals. The Vancouver-based apparel company said on Wednesday that former Nike executive Heidi O’Neill will take over as CEO on Sept. 8, ending a monthslong leadership search after Calvin McDonald stepped down in January amid a steep share-price slide and rising investor pressure, per the CBC. O’Neill, who spent 25 years at Nike and helped grow it from a $9 billion to a $45 billion business, will also join Lululemon’s board, as CFO Meghan Frank and COO Andre Maestrini, both currently co-interim CEOs, return to their previous roles.
O’Neill’s arrival follows a noisy campaign by founder Chip Wilson, who has criticized the company’s performance and pushed unsuccessfully for his own slate of board nominees. Lululemon instead recently added former Levi Strauss chief Chip Bergh. Analyst Neil Saunders called O’Neill a “safe and traditional” pick but also an “obvious choice,” given her activewear pedigree and board experience at Spotify and Hyatt. O’Neill, who Lululemon calls a “proven brand builder,” said she sees Lululemon as an “iconic brand” still early in its global potential and vowed to speed up product innovation and expand its reach as the company works to fend off growing competition and revive growth in North America. CNBC reports she’ll start off with a $1.4 million base salary, according to an SEC filing.
