Heidi O’Neill has been named the new CEO of Lululemon Athletica Inc. The former Nike executive is taking over from Calvin McDonald.Lululemon Athletica/Supplied
Lululemon Athletica Inc. LULU-Q has appointed former long-time Nike Inc. executive Heidi O’Neill as its new chief executive officer, completing a four-month search process that began with the announcement of former CEO Calvin McDonald’s departure late last year.
Ms. O’Neill will step into the role on Sept. 8 and she will join the board of directors on the same day. In the intervening months, interim co-CEOs Meghan Frank and André Maestrini will continue to lead the company.
The Vancouver-based retailer has been facing sharp questions about its future amid a declining stock price, a public fight with founder Chip Wilson and acknowledgements from its senior executive team that the brand had become stale with some of its most important customers.
Last month, Lululemon announced a muted growth estimate for the year ahead, with expected revenue growth of 2 to 4 per cent, driven by international markets. In North America – which has been a source of concern as the brand loses traction to rivals such as Alo and Vuori, as well as a litany of niche competitors that have multiplied in recent years – sales are expected to continue their slump for the year ahead.
Lululemon reports muted growth estimates for year ahead
Ms. O’Neill will now be tasked with reinvigorating the brand that played a leading role in creating the “athleisure” category, and spawned imitators that have wooed away some of Lululemon’s customers. The U.S. business has been slowing down, and executives have acknowledged that the company failed to keep up with trends and to convince shoppers to remain loyal.
In its most recent quarter, Lululemon reported that its net revenue grew by 1 per cent to US$3.6-billion, a result that was driven entirely by growth in its international markets. Sales in the Americas, however – which is Lululemon’s largest market – fell by 5 per cent on a constant-dollar basis in the quarter ended Feb. 1.
Lululemon’s stock price has dropped by about 50 per cent since June, 2025, and closed on Wednesday at US$163.45 on the Nasdaq.
Ms. O’Neill will face significant scrutiny from some major investors. In December, one of the world’s largest activist funds, Elliott Investment Management, took a more than US$1-billion stake in Lululemon. The firm put forward its own CEO candidate, former Ralph Lauren executive Jane Nielsen.
And Lululemon founder Mr. Wilson – no longer a member of the board, but still a major shareholder – has been vocal about his displeasure with the direction of the company he created, accusing the board of “complacency” and saying that the brand has “lost its edge.”
Elliott Investment takes $1-billion stake in Lululemon, pushes for new CEO
Mr. Wilson advocated for the appointment of new board members to lead the CEO search, and saying that the board needed to add people with more brand and product experience.
Ms. O’Neill received unanimous support from Lululemon’s board, according to a company news release issued on Wednesday. She spent 26 years at Nike., most recently as its president of consumer, product and brand. After her departure last year, her role was split into three, part of a major restructuring of Nike’s leadership under CEO Elliott Hill, who has been working to improve that company’s performance.
Ms. O’Neill also sits on the boards of Spotify, Hyatt Hotels Corp. and Lithia & Driveway. Hyatt chairman, president and CEO Mark Hoplamazian described her as “a thoughtful strategist with a deeply consumer-first mindset,” in a written statement provided by Lululemon.
Earlier in her career, Ms. O’Neill also worked in marketing for the Dockers apparel brand under its ownership by Levi Strauss & Co.
Lululemon recently announced the appointment of another former Levi Strauss executive, Chip Bergh, to its board of directors.
During her time at Nike, Ms. O’Neill led efforts to reduce timelines for product development, according to the release – something that Lululemon has been working to do, as it seeks to keep up more effectively with style trends in the hyper-competitive market for athleisure.
In a statement, Ms. O’Neill pledged to “accelerate product breakthroughs, deepen the brand’s cultural relevance and unlock growth in markets around the world.”