Dive Brief:
- Emphasizing innovation, Lululemon has tapped Ranju Das for the newly created chief AI and technology officer role effective Sept. 2, per a company release Tuesday.
- As part of a planned leadership transition, the brand’s Chief Information Officer Julie Averill will depart next month. The executive first joined Lululemon in 2017.
- Das will lead Lululemon’s next phase of technology and AI strategy, reporting directly to CEO Calvin McDonald.
Dive Insight:
Lululemon didn’t bring up artificial intelligence on its latest earnings call in June, but the company is hoping to leverage the technology to improve product development.
“We see an exciting opportunity to further leverage AI and technology to advance our product innovation process, improve our agility and speed to market, and bring more engagement and personalization to our guest experience,” McDonald said in a statement. “Ranju’s breadth of expertise and proven track record of leading large-scale technology and AI transformations make him the ideal individual to drive this work forward at Lululemon and take our technology organization to the next level.”
McDonald’s emphasis on AI usage for product development coincides with retailers working to expedite production.
Walmart in July announced a new AI framework, adding that the use of AI has allowed it to cut fashion production timelines by up to 18 weeks. Meanwhile, Target’s chief commercial officer in January noted the company has shortened its go-to-market timeframe from seven months to eight weeks.
Das brings prior experience in AI and technology, most recently founding the healthcare AI startup company Swan AI Studios. Prior to that, he was CEO of United Health Group’s research and development arm OptumLabs after holding various tech leadership roles at Amazon and Barnes & Noble.
Lululemon's departing CIO touted the brand's growth throughout her tenure.
“When I joined as CIO eight years ago, we were a $2B company bursting with potential,” Averill said in a Tuesday LinkedIn post. “Leading the technology transformation that helped scale us to $10.6B taught me something I'll carry forever: sustainable transformation happens through people, amplified by technology, rooted in culture that outlasts any individual leader.”
The AI push at Lululemon comes as the company battles a challenging tariff landscape. The athletics brand reported Q1 revenue grew 7% to $2.4 billion. Overall comps were up just 1% thanks to international growth, as comps in the Americas dropped 2% year over year.
Along with stagnating progress in the U.S. and merchandise decisions that stray from its performance yoga roots, industry analysts for Q1 earnings noted disappointment in the brand’s product rollout timelines.
The new C-suite position follows news in June that Lululemon would lay off about 150 corporate employees in store support centers to foster "more agility and further invest in our growth."
