Lululemon names Nike exec Heidi O’Neill as CEO amid pressure from founder

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Lululemon Names Former Nike Executive as CEO

Lululemon Athletica has announced the appointment of Heidi O’Neill, a former top executive at Nike, as its new chief executive. The move comes as the popular athletic apparel retailer faces pressure to revitalize its struggling business from its founder and a large activist investor.

O’Neill, who previously served as President of Consumer, Product & Brand at Nike, will take over as CEO of Lululemon in September. She replaces Calvin McDonald, who resigned amidst mounting pressure earlier this year.

Over the past year, Lululemon’s stock price has declined by 38%, leading to a decrease in the company’s market value to $18.8 billion. This drop is attributed to a decline in American sales, as well as increased competition from brands like Alo Yoga and Vuori.

Following the announcement of O’Neill’s appointment, investors reacted negatively, causing the stock price to drop by more than 6% in after-hours trading.