Lululemon is making some high-stakes moves in the boardroom today, and it’s a total power play. The company just announced that Maggie Gauger, who has been serving as the CEO of Athleta, is jumping ship to become Lululemon’s new president and chief product officer later this month.
The New Game Plan
This isn't just a simple hire—it's a massive restructuring. Gauger, who actually joined Athleta from Nike only last year, will be stepping into a brand-new role created specifically to sharpen Lululemon’s focus on design and innovation. Along with her, Joseph Godsey is stepping in as the new chief operating officer.
Real talk: this is a major W for the company's long-term strategy, but it comes with a shakeup. Two long-time execs—Nikki Neuburger, the chief brand and product activation officer, and Ted Dagnese, the chief supply chain officer—are heading for the exits this November to pursue other opportunities.
Why it matters
The vibes have been off at Lululemon lately. CEO Heidi O'Neill, who took the helm just last month, is dealing with over a year of mid-tier sales performance and some very vocal heat from founder Chip Wilson. The company is currently in deep-search mode for a chief brand officer, a chief communications officer, and a chief technology officer to round out the team. For investors and fans alike, the message is clear: Lululemon is trying to secure the bag by putting product design at the absolute center of their operations to fend off fierce competition in the athleisure space.
