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Lululemon CEO hire from Nike fails to impress investors, shares sink
Investors questioned the hire because O'Neill lacks public-company CEO experience and Lululemon is trying to reverse market-share losses.
- On Thursday, Lululemon Athletica Inc. named former Nike executive Heidi O'Neill as chief executive officer, with shares falling about 12 per cent in morning trading.
- The appointment concludes a months-long search marked by pressure from activist investor Elliott Investment Management, while founder Chip Wilson continues to advocate for a board overhaul.
- BTIG analyst Janine Stichter stated, "We do not expect the market to receive this appointment positively," citing O'Neill's tenure at Nike overlapping with challenges mirroring Lululemon's struggles.
- O'Neill, who joins in September, faces an immediate mandate to stem market share losses and refresh the brand as product lead times have ballooned to about 24 months.
- Analysts remain cautious, noting it is "too early to say whether she's the right fit," as investors await O'Neill's strategy for the product reset and brand repositioning.
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Lululemon shares tumble 13% after former Nike exec named new CEO
Lululemon Athletica Inc.'s share price fell more than 13 per cent a day after the retailer named a new CEO. The Vancouver-based company's shares ended Thursday trading on the Nasdaq at about US$141.
Coverage Details
Total News Sources24
Leaning Left7Leaning Right3Center6Last UpdatedBias Distribution44% Left
Bias Distribution
- 44% of the sources lean Left
44% Left
L 44%
C 37%
R 19%
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