Both activewear brands have been struggling with weak financial performances in recent seasons.
Lululemon, which has been suffering from revenue declines and shrinking profitability, said Wednesday that Maggie Gauger has been named president and chief product officer. Gauger formerly ran Athleta as its chief executive officer and global brand president. Athleta, a division of Gap Inc., is a direct competitor of Lululemon.
Lululemon also disclosed that Joseph Godsey has been appointed chief operating officer. Gauger and Godsey are both taking on newly created roles, effective Oct. 26, the company said.
With these changes, Lululemon also said Nikki Neuburger, chief brand and product activation officer, and Ted Dagnese, chief supply chain officer, will leave the company “to pursue other opportunities.” Both will depart on Nov. 6 and help with a transition.
Just one month ago, Heidi O’Neill stepped in as Lululemon’s new chief executive officer.
Further management changes are expected with searches underway for a chief brand officer, chief communications officer and chief technology officer.
Lululemon’s second-quarter sales fell 4 percent to $2.4 billion with a 12 percent comparable sales drop in the Americas and a 3 percent decline internationally. And even with a $134.5 million boost from tariff refunds, profits dropped 11.2 percent to $329.2 million. In 2025, net revenue increased 5 percent to $11.1 billion and income from operations decreased 12 percent to $2.2 billion.
“Lululemon is a rare, extraordinary brand, but we have work to do to build a stronger and more competitive company,” O’Neill said in a statement Wednesday.
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