Can incoming CEO Heidi O’Neill breathe new life into Lululemon brand?

Heidi O'Neill has been named chief executive of Lululemon Athletica Inc. Photo by Lululemon Athletica Inc./Handout/The Canadian Press

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When Heidi O’Neill takes the reins of Lululemon Athletica Inc. on Sept. 8, she will be tasked with reviving the Vancouver-based retailer’s growth while appeasing a discontented and outspoken group of shareholders who will likely be watching her every move.

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Here, the Financial Post looks at the incoming CEO’s long career with one of Lululemon’s rivals, what the market thinks of her hiring and how the change at the top will affect the company’s ongoing proxy war with its founder.

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Who is Heidi O’Neill?

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Lululemon drafted its new CEO from a competing team. O’Neill spent more than 25 years at Nike Inc., most recently serving as president, consumer, product and brand before leaving the company last September.

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O’Neill has “more than three decades of experience across performance apparel, footwear, and sport,” Lululemon said in a press release.

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Before landing at Nike, O’Neill worked in marketing for the Dockers brand at Levi Strauss & Co. She is also a board director of Hyatt Hotels Corp., Spotify Technology S.A. and automotive dealership group Lithia Motors, Inc.

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While O’Neill is a retail industry veteran, she flew under the radar as a potential candidate to replace former chief executive Calvin McDonald, who stepped down in January.

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The decision to appoint O’Neill continues Lululemon’s tradition of “out-of-left-field CEO picks,” William Blair & Co. analyst Sharon Zackfia said in a note. She said “O’Neill was not a name bandied around on Wall Street given no prior public company CEO experience.”

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However, Zackfia said O’Neill brings a “significant breadth of knowledge” in women’s performance apparel.

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“Her experience accelerating speed-to-market is particularly welcome at Lululemon where lead times have ballooned to about 24 months (eroding much of the brand’s historical competitive advantage of adding beauty to function via short lead times),” Zackfia said.

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Why did Lululemon choose O’Neill?

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During her time at Nike, O’Neill covered a lot of professional ground, working variously in “product creation and design, brand strategy, marketing, digital commerce and global market operations,” Lululemon said in a press release.

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“We selected Heidi because of the breadth of her experience, her demonstrated success delivering breakthrough ideas and initiatives at scale, and her ability to be a knowledgeable change and growth agent,” said executive chair Marti Morfitt in a statement.

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In her most recent role at Nike, Lululemon said O’Neill “reset the brand foundation” and “reduced product development timelines to accelerate speed to market” — two feats that may help the incoming CEO in her new job.

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“During her career at Nike, Inc., she helped grow the company from a $9-billion-plus business to a $45-billion-plus global leader,” Lululemon said. “She played a central role in overseeing the company’s product pipeline, brand voice, and operations, as well as in shaping its connection with consumers and athletes worldwide.”