Dive Brief:
- Amid slowing sales and demand in North America, Lululemon President of the Americas and Global Guest Innovation Celeste Burgoyne is leaving the retailer to become chief revenue officer of ski resort company Vail Resorts. She will remain at the activewear retailer through the end of the year to assist with a transition.
- In conjunction with her departure, Lululemon is consolidating its regional leadership under a new role. André Maestrini will oversee all regions, stores and digital channels globally as Lululemon’s president and chief commercial officer, effective immediately. He reports to CEO Calvin McDonald.
- Maestrini joined Lululemon in 2021 as executive vice president of international and currently oversees Lululemon’s operations across Europe, the Middle East and Africa, Asia Pacific and China Mainland.
Dive Insight:
In Burgoyne’s departure, Lululemon is losing a 20-year company veteran who heads up the brand’s most important region. Her exit comes just a year and a half after Chief Product Officer Sun Choe left the business.
Many viewed these executives “as two of the key architects to [Lululemon’s] ascendance,” Needham analyst Tom Nikic said in emailed comments. “The loss of both of these key executives, during a period of turbulence for the brand in North America, is not ideal.”
In a statement, McDonald thanked Burgoyne for her “significant contributions” to the business and called her “instrumental” in the growth of Lululemon’s store footprint in the Americas. She first joined Lululemon in 2006 and has been the brand’s president since 2020.
Maestrini, who will now have charge of North America, leads one of Lululemon’s core growth segments. International is expected to quadruple by 2026, a five-year growth target that came after the achievement of a previous long-term target to quadruple the business. In addition to his time at Lululemon, Maestrini also brings 14 years of experience at Adidas. McDonald praised the executive’s operational capabilities and brand-building expertise as he enters the new role.
The loss of Burgoyne, though, also means the loss of “a key source of stability” for Lululemon, Nikic said. It comes as Lululemon is in the midst of overhauling product design and development processes to get back in touch with a consumer who increasingly has other options.
“All in, we think that Ms. Burgoyne's departure adds an additional layer of uncertainty to the North American turnaround, in addition to the challenging macro environment, increasingly intense competitive landscape, and potential ‘athleisure fatigue’ by consumers,” Nikic said.
