Lululemon appoints Heidi O’Neill as CEO as shares fall
Updated
Updated · The Wall Street Journal · May 1
Lululemon appoints Heidi O’Neill as CEO as shares fall
11 articles · Updated · The Wall Street Journal · May 1
The stock dropped 13% on the announcement, and O’Neill cannot start until 8 September because of a Nike noncompete, leaving interim co-CEOs Meghan Frank and André Maestrini in charge.
Investors and analysts criticised her Nike record and the delayed start as founder Chip Wilson escalated a proxy fight, while Lululemon added former Unilever executive Esi Eggleston Bracey to its board.
The retailer has faced more than a year of turmoil, with declining North America sales, Elliott Investment Management pressing for change, and no annual meeting date yet announced as settlement talks falter.
Can a Nike veteran revive Lululemon, or will her controversial strategy sink the brand further?
As its home market crumbles, is Lululemon's international push a saving grace or a costly distraction?