• by Sarah Mahoney , 3 hours ago

 
Weeks into her new role as Lululemon CEO, Heidi O’Neill is making major changes, hiring a new president and chief product officer, as well as a COO. She says the company is also looking for a new chief brand officer and a communications officer as she works to bring the apparel brand back to some of its former glory.

Maggie Gauger, president and CEO of Athleta, will join Lululemon as president and chief product officer later this month. The role is designed to strengthen the end-to-end product creation engine and make it faster and more innovative. She will oversee all merchandising and design.

Joseph Godsey is the company’s new chief operating officer, joining from Walmart Canada, where he most recently served as chief growth officer. This is also a new role, designed to bring sourcing and production together.

Nikki Neuburger, chief brand and product activation officer, and Ted Dagnese, chief supply chain officer, are leaving the company.

The Canadian apparel giant has begun searching for its next chief brand officer, who will lead marketing, creative, store experience, and community, including sports marketing, partnerships, and social impact. And it’s also hunting for the next chief communications officer. The person in that role will join the senior leadership team and report directly to O’Neill.

“Lululemon is a rare, extraordinary brand, but we have work to do to build a stronger and more competitive company,” said O’Neill in the announcement. “We are establishing a deeply experienced leadership team that will work in a more coordinated manner, aligned around the strategy and execution that delivers the most impact for our guests, our communities, and our business. That starts with putting product, design, and innovation at the center of how we operate, with the focus and accountability to create a stronger pipeline of differentiated product to raise the bar for our guests across every touchpoint.”

O’Neill, appointed CEO in April but restricted from starting until her non-compete contract with Nike expired, is in the hot seat, and observers are watching closely to see what comes next.

In second-quarter results released last month, the company says revenue slipped 4% to $2.4 billion, with comparable sales dropping 9%. Since last December, the company’s stock price has fallen about 50%.

O’Neill, who spent 30 years at Nike, joined Lululemon amid its very public spat with Chip Wilson, the brand’s founder and a major stockholder. He argued against her hiring, saying she lacked the “transformative, creative leadership” required to right the struggling brand. The proxy battle ended with two of Wilson’s candidates getting board seats.

Since then, the Wilson saga has taken another turn: Wilson, 71, and wife Shannon "Summer" Wilson are reportedly divorcing and have no pre-nup in place. His net worth is estimated at $6.1 billion, including nearly $1 billion in Lululemon (about 8.6% of the company) and about $3 billion in Amer Sports, which owns Arc'teryx and Salomon.