Lululemon’s board selected Heidi O’Neill as CEO, effective Sept. 8, with a base salary of $1.4 million. Until then, co-CEOs Meghan Frank and André Maestrini will manage operations and will return to prior roles once she assumes leadership.

O’Neill spent over 20 years at Nike, most recently serving as president of consumer, product and brand, overseeing global product development, brand strategy and marketing. Her earlier roles include marketing for Dockers at Levi Strauss & Co., and she serves on multiple public company boards.

Lululemon confronts rising operational costs, including an expected $380 million in tariff charges, alongside decelerating consumer demand and intensifying competition in athletic apparel. Growth has slowed, with the stock declining over 21% year to date before a further 5% drop in extended trading.

Activist investor Elliott Investment Management holds a position exceeding $1 billion in Lululemon shares, pressing for board changes, while founder Chip Wilson also advocates for governance revisions. These pressures heighten expectations for O’Neill to drive faster growth and cost controls.