The Backroom: What’s really happening at Lululemon?
Lululemon's appointment of Nike executive Heidi O'Neill as CEO has caused an uproar. Although she doesn't officially take office until September, skepticism has already been overwhelming, with some analysts believing the reaction is overblown. Meanwhile, founder Chip Wilson is waging a board battle, demanding further leadership changes. All these conflicts are set to come to a head before the annual shareholders meeting in June.
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There have been plenty of CEO announcements in the world of retail this year, but few have had the same visceral reaction as Lululemon’s choice to appoint Heidi O’Neill to the top spot.
Though she doesn’t start the role officially until September, negative opinions about her ability to improve the business have been prolific, though some analysts think the reaction is overblown. At the same time, the athletics brand is facing a board battle with founder Chip Wilson, who wants more change within the company’s leadership.
All the drama is culminating ahead of Lululemon’s annual shareholder meeting in June. But the brand’s issues, from a product and reputation perspective, aren’t new. For the latest episode of The Backroom, the team breaks down the chaos ensuing at Lululemon.
Resource links:
- Is Heidi O’Neill exactly what Lululemon needs?
- Lululemon claps back at Chip Wilson after spurned settlement offer
- Lululemon’s ‘downward spiral’ — and how the brand plans to break out of it
Editor’s note: This episode was produced and edited by Caroline Jansen.