Lululemon names ex-Nike leader Heidi O’Neill as CEO to steer turnaround

Lululemon has named former Nike executive Heidi O’Neill as chief executive, turning to a seasoned brand operator to revive growth after a prolonged slump in its core US market and mounting investor pressure.

The Vancouver-based athleisure retailer said O’Neill, who previously served as president of consumer, product and brand at Nike, will take up the role in September. She replaces Calvin McDonald, who stepped down in January following intensifying scrutiny of the company’s performance, Reuters reported.

Leadership reset amid investor pressure

The appointment follows a period of turbulence marked by activist intervention and public criticism from founder Chip Wilson. According to Reuters, hedge fund Elliott Investment Management built a roughly $1 billion stake in the company and had signalled a push for leadership change, backing alternative candidates.

Wilson, who retains a stake of about 4.3%, has also criticised the company’s strategic direction and brand positioning, arguing that it has lost its edge. He is currently pursuing a boardroom challenge ahead of the annual meeting, seeking to install his own nominees.

Sales slowdown and market share challenges

Lululemon’s leadership overhaul comes against a backdrop of weakening fundamentals. The company’s shares have fallen about 38% over the past 12 months, reducing its market value to approximately $18.8 billion.

The decline reflects slowing US sales and shifting consumer preferences, with customers increasingly gravitating towards rivals such as Alo Yoga and Vuori, as well as lower-priced alternatives. The announcement of O’Neill’s appointment was met with a negative market reaction, with shares dropping more than 6% in after-hours trading.

Track record in product and brand execution

O’Neill brings more than two decades of experience at Nike, where she played a central role in accelerating product development cycles and sharpening consumer engagement. Lululemon said her experience in driving speed to market and aligning product strategy with evolving customer expectations was a key factor in the appointment.

Industry analysts have pointed to the need for stronger product leadership and a cultural reset within the company. Jefferies analysts noted that a “fresh perspective” is required, given the company’s underperformance in both financial metrics and share price over recent years.

Until O’Neill assumes the role, finance chief Meghan Frank and chief commercial officer André Maestrini will continue as interim co-chief executives, the company said. The board has also been reshaped in recent months, including the addition of former Levi Strauss chief Chip Bergh and an expanded role for director Martha Morfitt as executive chair.

While Lululemon remains profitable and retains a loyal customer base, its post-pandemic growth trajectory has weakened. Analysts say the incoming chief executive will need to stabilise North American demand, rebuild brand momentum and navigate ongoing governance tensions.

O’Neill’s success will likely depend on her ability to translate operational discipline into renewed product relevance and restore investor confidence in a business under sustained scrutiny.