Key facts
- Maggie Gauger, former Nike VP and ex-CEO of Athleta, will join Lululemon on October 26 as chief product officer.
- Joseph Godsey was appointed chief operating officer.
- Nikki Neuburger, chief brand officer, and Ted Dagnese, chief supply chain officer, will depart on November 6.
- Lululemon shares have fallen nearly 50% this year.
- Net income is expected to drop nearly 40% this year.
Lululemon Athletica Inc. has appointed Maggie Gauger, a former Nike vice president and ex-CEO of Gap's Athleta brand, as its new chief product officer. Gauger will join the struggling apparel maker on October 26, a move that signals a significant leadership overhaul under new CEO Heidi O'Neill.
Investors are closely monitoring O'Neill's strategy to revive the company's fortunes as it faces competition from newer rivals and shifts in consumer preferences beyond its signature leggings. Gauger's appointment comes at a critical time, as Lululemon has experienced product missteps that have led to consumer backlash and recalls.
In addition to Gauger's appointment, Joseph Godsey has been named chief operating officer. CEO Heidi O'Neill stated that these appointments are a crucial step in strengthening the company's connection with customers and building a foundation for long-term growth.
Lululemon's financial performance has been weak, with its shares declining by nearly 50% year-to-date and on track for a third consecutive year of losses. According to LSEG data, the company's net income is projected to fall by almost 40% this fiscal year compared to fiscal 2024.
Furthermore, Lululemon announced that chief brand officer Nikki Neuburger and chief supply chain officer Ted Dagnese will leave the company effective November 6. Chief Financial Officer Meghan Frank will temporarily assume responsibility for global brand and technology functions until replacements are found.