Canada’s Lululemon Athletica (LULU) has hired a former Nike (NKE) executive to be its next chief executive officer (CEO).
The Vancouver-based athletic apparel retailer announced that Heidi O’Neill will become its new CEO on Sept. 8 of this year. She will also join the company’s board of directors.
In a news release, Lululemon said that O’Neill was chosen for the role because of her experience in the athletic wear and sneaker business at Nike.
Lululemon credited O’Neill with helping to grow Nike from a $9 billion U.S. business into a $45 billion U.S. athletic brand during her 25 years at the company.
O’Neill has also worked in marketing at Levi Strauss & Co. (LEVI) and served on the board of directors at music streaming giant Spotify Technology (SPOT).
Her appointment comes during a difficult time at Lululemon. The company’s stock is down 52% over the last five years amid slowing sales, disappointing earnings, and product misfires.
Shareholders, including Lululemon’s founder Chip Wilson, have been pushing for leadership changes, both at the executive level and on the board of directors.
Wilson, who remains Lululemon’s largest individual shareholder, has publicly sparred with the company’s board of directors in recent years.
O’Neill was not the list of executives that Wilson had urged Lululemon to hire as its next CEO.
Lululemon has also been targeted by activist investor Elliott Investment Management, which has taken a $1 billion U.S. stake in the company and is agitating for change.
LULU stock is down 6% on news of O’Neill’s appointment. The share price has fallen 23% this year to trade at $163.45 U.S. per share.
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