Lululemon Hires Away Athleta's CEO to Lead Product

Lululemon has poached Athleta CEO Maggie Gauger as president and chief product officer, effective later this month, in a newly created role the company announced Wednesday.

The hire is the latest shakeup at the top of the increasingly competitive athleisure market. Gauger joined Athleta from Nike only last year, making her tenure at Gap's athletic brand remarkably short before the jump to its biggest rival.

Lululemon announced further moves alongside her arrival: it appointed Joseph Godsey as chief operating officer. At the same time, two executives are heading out. Chief brand and product activation officer Nikki Neuburger and chief supply chain officer Ted Dagnese will leave in November to "pursue other opportunities," the company said.

What is Lululemon's stated strategy?

CEO Heidi O'Neill framed the changes as a push to put product back at the center of the business.

"We are establishing a deeply experienced leadership team that will work in a more coordinated manner, aligned around the strategy and execution that delivers the most impact for our guests, our communities, and our business," O'Neill said in a statement. "That starts with putting product, design, and innovation at the center of how we operate, with the focus and accountability to create a stronger pipeline of differentiated product to raise the bar for our guests across every touchpoint, in stores and online."

O'Neill took the helm only last month. She inherits a company that has logged more than a year of disappointing sales performance amid a proxy battle that drew criticism from founder Chip Wilson.

How is Athleta's parent Gap responding?

Gap, Athleta's parent company, confirmed Gauger's departure in a statement provided to CNBC. Erika Everett, Athleta's current chief marketing officer, will oversee the brand CEO role in the interim.

"We have been actively shaping Athleta's next chapter and the changes needed to position the brand for long-term growth," Gap said. "This transition enables us to accelerate that work, strengthen our connection with customers, and unlock Athleta's full potential."

The framing signals Gap intends to treat the leadership vacuum as an opening to push through changes already underway rather than a setback for the brand.

Who else is Lululemon still hunting for?

The Gauger and Godsey appointments do not complete the rebuild. Lululemon said it is also searching for:

• a chief brand officer,
• a chief communications officer,
• and a chief technology officer.

That means roughly half of the retailer's senior leadership bench is in flux at once — a new CEO, a new product president, a new COO, two departing officers and three open seats.

The bet behind the reshuffle is clear: differentiated product, not marketing activation, drives the next phase of growth. Whether Gauger can deliver that pipeline faster at Lululemon than she reshaped Athleta during her single year there will define O'Neill's first year in charge.