Lululemon store sign in London, March 2, 2026.
Peter Dazeley Getty Images
Lululemon on Wednesday appointed Heidi O’Neill as the new CEO of the athletics company, effective September 8.
The news comes after the company has seen disappointing performance for more than a year and is facing proxy war legend, with founder Chip Wilson criticizing the business.
The company’s shares sank more than 5% in extended trading.
O’Neill held many roles at Nike, contributing to the growth of sportswear. He has also held positions at Levi Strauss, Hyatt Hotels and Spotify.
“Heidi is an inspirational leader and a proven, consumer-driven brand strategist, with a rare ability to envision new brand futures and create the structure and processes to deliver that vision,” said Marti Morfitt, executive chairman of Lululemon’s board of directors, in a statement. “We chose Heidi because of her breadth of experience, demonstrated success in delivering innovative ideas and programs at a high level, and her ability to be an experienced agent of change and growth.”
O’Neill said in a statement that he plans to focus on building the company’s core business and unlocking growth in global markets. O’Neill will start with a base salary of $1.4 million, according to the 8-K filing.
“The opportunity I got made me happy and it gives me enthusiasm for what the team is already building,” he said in his statement. “I look forward to joining the company and helping to define and deliver the next chapter of the organization’s success.”
Lululemon has been struggling with weak sales and increased competition, as well as rising costs from expenses. In its last earnings report, the retailer said it expects the pricing to cost the company $380 million this year.
Wilson, Lululemon’s largest shareholder, has also been lobbying for changes to its board of directors. He did not immediately respond to a request for comment on his appointment.
In a statement, GlobalData managing director Neil Saunders said O’Neill has “a very strong pedigree in the activewear and sports space” and “has a deep understanding of how the industry works.”
“There will be some, especially activist investors, who see O’Neill as a safe and traditional option,” Saunders said. “This argument is partially valid as many cultural changes are needed at Lululemon to improve performance. However, in our view, O’Neill is the man to bring the change agenda.”
During his time at Nike, O’Neill played a key role in the company’s direct-to-consumer strategy, where the brand abandoned retail partners in favor of a website and stores under former CEO John Donahoe. When current CEO Elliott Hill took over as Nike’s CEO, he made it a priority to reverse the direct selling system.
Before leaving Nike, O’Neill also oversaw product and innovation at a time when the brand faced criticism for falling behind on new products and focusing too much on the same legacy lifestyle franchises, Dunks, Air Force Ones and Air Jordans. Although the franchises briefly led to increased sales, fueling Nike’s growth into a $50 billion brand, they eventually became ubiquitous in the market and were viewed by other consumers as themselves.
Now, Hill is working to dismantle that strategy and remove inventory from those franchises in the marketplace, which has hurt Nike’s margins and led to a decline in online sales.
