VANCOUVER, British Columbia, April 22, 2026, 15:10 PDT
- Heidi O’Neill is set to take over as CEO on Sept. 8, joining Lululemon’s board and relocating to Vancouver.
- Calvin McDonald departed in January, and now, with pressure mounting from both founder Chip Wilson and activist Elliott Investment Management, the company takes this step.
- Americas revenue dropped 4% for the quarter, but international sales jumped 17%.
Lululemon Athletica tapped Heidi O’Neill, a former Nike executive, as its next chief executive on Wednesday, following a stretch of sluggish U.S. sales and mounting shareholder pressure. O’Neill is set to step in on Sept. 8 and will also join the board, the company said.
This shift takes on fresh importance: Lululemon’s scrambling to steady its main Americas division at a time when its momentum is slipping and a boardroom dispute refuses to go away. Just last month, the company projected revenue growth of just 2% to 4% for 2026. In the latest quarter, sales in the Americas dropped 4%, even as international revenue jumped 17%.
The split has put more pressure on the brand in North America, as consumers turn toward Alo Yoga, Vuori, and lower-priced alternatives, according to Reuters. That tension has erupted into a proxy battle—founder Chip Wilson is leading a push to overhaul the board, while Elliott Investment Management has snapped up about $1 billion in shares and is calling for bigger changes.
O’Neill was first tipped for the role by The Wall Street Journal, with Lululemon confirming her appointment later Wednesday. A Nike veteran with over 25 years at the company—including a stint as president of consumer, product and brand—O’Neill was credited by Lululemon with speeding up product development and getting items to shelves more quickly.
Executive Chair Marti Morfitt described O’Neill as “an inspiring leader” and “consumer-driven brand strategist.” O’Neill pointed to “genuine guest love” for the brand and suggested there’s still space to “accelerate product breakthroughs” while the company pursues global growth. Lululemon
Meghan Frank and André Maestrini, the interim co-CEOs, are set to hold onto their posts through September before shifting back to CFO and chief commercial officer. That wraps up the CEO search that began after Calvin McDonald exited in January.
Last month, Frank laid out the game plan for investors: push “full-price sales growth in North America” by rolling out fresh products, cutting back on style variety, and working down inventory. That’s landing on O’Neill’s desk too, as the shareholder dispute drags on. Reuters
A fresh CEO won’t fix it all. O’Neill isn’t starting until September, and there’s still plenty weighing on the company: tariffs, squeezed consumers, markdowns hitting apparel, plus the proxy battle—factors that could drag on both margins and management focus. Wilson flagged it last month, cautioning that unless there’s “meaningful change in the boardroom,” the new chief could be looking at a “perpetual struggle.” Reuters
Lululemon stock slipped around 2% during late U.S. trading on Wednesday. Over the last 12 months, shares have tumbled close to 38%.
Wilson hasn’t backed down from his push—he’s still aiming to get three nominees onto the board at the annual meeting later this year. Elliott keeps up the pressure, too. O’Neill steps into a business that’s profitable and expanding overseas, though the boardroom battle drags on and the slowdown at home remains unsettled.
