Dive Brief:
- Lululemon CEO Heidi O’Neill is overhauling the athletics retailer’s C-suite, about a month after joining the retailer.
- Athleta CEO Maggie Gauger is joining Lululemon as chief product officer, while Walmart Canada Chief Growth Officer Joseph Godsey is taking on the role of chief operating officer. Both are newly created positions for Lululemon and will take effect Oct. 26.
- Chief Supply Chain Officer Ted Dagnese and Chief Brand and Product Activation Officer Nikki Neuburger are leaving, effective Nov. 6. Lululemon is searching to fill three other C-suite roles: chief brand officer, chief communications officer and chief technology officer.
Dive Insight:
Thursday marks one month to the day since O’Neill started at Lululemon, but observers have been waiting since April to see what her first moves would be as CEO.
Wednesday’s announcement is the first stab at turning an ailing Lululemon around, with a promise that the evolved leadership structure will help the company focus on innovation, a distinct brand experience and operational improvements.
“Lululemon is a rare, extraordinary brand, but we have work to do to build a stronger and more competitive company,” O’Neill said in a statement. “We are establishing a deeply experienced leadership team that will work in a more coordinated manner, aligned around the strategy and execution that delivers the most impact for our guests, our communities, and our business. That starts with putting product, design, and innovation at the center of how we operate, with the focus and accountability to create a stronger pipeline of differentiated product to raise the bar for our guests across every touchpoint, in stores and online.”
Lululemon’s C-suite will include a few familiar faces. Notably, Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini — who ran the company as co-CEOs after Calvin McDonald’s departure in January — will remain in their current positions. Frank will take on an expanded role leading brand and technology functions until the company names new leaders for those departments.
Shannon Higginson will also continue to serve as chief legal and compliance officer, and Susan Gelinas will continue in her role as chief people and culture officer.
One of the aims of the restructure is to put design at the company’s center, which will be the purview of Lululemon’s new product chief and president. Gauger, who joined Athleta as CEO a little over a year ago, is a long-term Nike vet like O’Neill. She will oversee Lululemon’s merchandising and design teams, as well as footwear, product innovation and materials science.
“This new structure is designed to enable greater focus and speed from product vision through execution while raising the bar for product excellence, technical innovation, and differentiated value for guests,” per the press release.
It’s an important directive for Lululemon, which has struggled for months with product that hasn’t resonated with shoppers.
Godsey as chief operating officer will run sourcing, production, commercialization, go-to-market, fulfillment and other functions. In addition to experience at both Walmart and Sam’s Club, Godsey spent 15 years at Adidas in various leadership roles. At Lululemon his focus will be to “strengthen product quality, execution across the business, and speed-to-market.”
At the same time, several roles are yet to be filled. Included among them are three positions on the senior leadership team and a chief strategy officer, who will report to Frank.
The company’s new chief brand officer will oversee all brand marketing, creative and community, as well as the store experience. The communications chief will now be a part of the senior leadership team and will oversee all communications functions globally. The company’s next chief technology officer will be responsible for product and supply chain technology, including cybersecurity and AI use.
