Lululemon is restructuring its senior leadership team just 29 days after Heidi O’Neill became chief executive officer, recruiting Walmart Canada Chief Growth Officer Joseph Godsey and Athleta President and CEO Maggie Gauger to newly created positions as the Vancouver-based retailer works to reverse declining sales in North America.
Godsey will join lululemon as Chief Operating Officer, while Gauger will become President and Chief Product Officer, with both appointments taking effect October 26. The changes are part of a broader reorganization under O’Neill that will also see lululemon recruit a Chief Brand Officer, Chief Communications Officer, Chief Technology Officer and Chief Strategy Officer.
The moves represent a significant rebuilding of the leadership structure at one of Canada’s most prominent global retail brands, with a particular emphasis on product development, brand and operational execution.
Walmart Canada Executive Joins Lululemon
Godsey’s move is particularly notable within the Canadian retail sector. As Chief Growth Officer at Walmart Canada, his responsibilities have included the retailer’s e-commerce business as well as advertising, financial services, membership, analytics, data services and product.
Before taking on the role, Godsey served as Chief Supply Chain Officer at Sam’s Club. He previously spent approximately 15 years at Adidas in positions spanning digital commerce, retail, technology, marketing, omnichannel operations and supply chain. That varied background will now be applied to a broad portfolio at lululemon.
Godsey will oversee sourcing and production, commercialization, go-to-market operations, fulfilment, planning and allocation, and sustainability. Lululemon said the new structure is intended to improve product quality, execution and speed to market.
His recruitment therefore goes beyond the movement of a senior executive between two major retailers operating in Canada. Lululemon is bringing in an executive with experience spanning supply chain, digital commerce, technology and large-scale omnichannel retail at a time when the company is looking to improve how quickly and consistently products reach consumers.
Product Moves to the Centre
Gauger’s appointment provides another indication of O’Neill’s priorities. She most recently led Athleta, one of lululemon’s competitors in the athletic and lifestyle apparel market, and brings nearly three decades of experience in performance apparel.
Before joining Gap Inc., Gauger spent more than two decades at Nike, including leadership of its North American women’s business and roles involving direct-to-consumer operations, running and tennis. At lululemon, Gauger will oversee design, merchandising, footwear, product innovation and materials science, consolidating several critical product functions under a single executive.
The appointment comes as Athleta itself remains under pressure. The brand has continued to report declining sales while Gap Inc. works to reposition the business, making Gauger’s longer track record in product development and at Nike particularly relevant to her new mandate.
Product has also emerged as a central issue for lululemon. The retailer has acknowledged the need to strengthen product newness and give consumers more reasons to return to the brand, making the decision to consolidate product creation, merchandising and innovation under Gauger significant.
There is also a notable connection between Gauger and O’Neill. O’Neill spent more than 25 years at Nike, eventually becoming President of Consumer, Product and Brand. Their shared backgrounds do not necessarily indicate lululemon intends to replicate Nike’s structure, but the company will now have two senior leaders with extensive experience integrating product, merchandising and brand strategy within a global athletic business.
North American Sales Under Pressure
The changes come as lululemon deals with a sharp deterioration in its core North American business. For the second quarter of 2026, revenue declined four per cent to approximately $2.4 billion, while comparable sales fell nine per cent. The weakness was greater in the Americas, where revenue declined eight per cent and comparable sales fell 12 per cent. Operating income was down 13 per cent.
Lululemon has also lowered its expectations for the year. The company now forecasts 2026 revenue of approximately $10.35 billion to $10.50 billion, representing a decline of roughly five to seven per cent. North American revenue is expected to decline at a low-double-digit rate, although Canada has been performing somewhat better than the United States.
At the same time, the premium activewear market has become considerably more crowded, with brands including Alo Yoga and Vuori expanding their presence alongside established global athletic companies. Importantly, lululemon itself has acknowledged that its deterioration cannot be explained solely by a difficult consumer environment. Management has identified shortcomings in product newness and marketing execution, putting pressure on the retailer to create products that can re-engage existing customers while attracting new ones.
That makes the division of responsibilities between Gauger and Godsey particularly noteworthy. Gauger will oversee much of the process determining what lululemon creates, while Godsey will oversee much of the operational machinery required to manufacture, commercialize, allocate and deliver those products. The structure suggests O’Neill is addressing both sides of the equation: what lululemon sells and how effectively it gets those products to consumers.
O’Neill Moves Quickly
O’Neill formally became lululemon’s CEO on September 8, making Wednesday’s announcement just 29 days into her tenure. When she assumed the role, O’Neill acknowledged that the company had work to do and said she intended to determine what was working, what was getting in the way and where change was required.
Less than a month later, the first outlines of that reset are becoming visible. Chief Brand and Product Activation Officer Nikki Neuburger and Chief Supply Chain Officer Ted Dagnese will leave the company effective November 6. Chief Financial Officer Meghan Frank will temporarily oversee global brand and technology while searches for permanent leaders continue.
O’Neill also inherited a company already undergoing significant leadership change. Former CEO Calvin McDonald departed earlier this year, Frank and André Maestrini subsequently served as interim co-CEOs, and Chief AI and Technology Officer Ranju Das left in August. With new executives arriving, existing leaders departing and searches underway for several other C-suite positions, the restructuring remains a work in progress.
Product and Brand Under Scrutiny
The changes also follow months of debate over lululemon’s direction. Founder Chip Wilson has publicly criticized the company’s board and argued that lululemon had lost some of the product and creative focus that helped build the brand. The company disputed elements of Wilson’s characterization, and the two sides later reached a governance agreement that included changes to the board.
Wednesday’s restructuring should not be characterized as a response to Wilson, although O’Neill’s emphasis on product, innovation and brand overlaps with several issues that have featured prominently in the broader debate over lululemon’s direction. Investors have also significantly reassessed the company’s growth prospects as sales have weakened, increasing the importance of O’Neill’s efforts to restore momentum in North America.
With several senior searches still underway, her restructuring of lululemon is not finished. O’Neill’s first month suggests the company is unwilling to simply wait for its North American business to recover without making substantial changes to how products are created, marketed and brought to consumers. The larger test will be whether those organizational changes translate into stronger products, renewed consumer interest and, ultimately, a return to sales growth.
