(Bloomberg) — Lululemon Athletica Inc.’s top communications officer is leaving the yogawear company, adding to the list of executives who are departing ahead of Chief Executive Officer Heidi O’Neill’s arrival.
Chief Communications Officer Bill Chandler’s last day will be Sept. 4, according to an internal memo viewed by Bloomberg News. O’Neill is scheduled to begin work as CEO on Sept. 8.
Chandler’s is the third departure ahead of her arrival. Last week, Lululemon’s chief AI and technology officer, Ranju Das, left. Prior to that, Chief Strategy Officer Rachel Acheson stepped down from her role.
In a posting on LinkedIn, Chandler said “now is the right time” to “consider what my next chapter might look like.” Lululemon said in a statement he’s looking for opportunities elsewhere.
The departures leave key roles to be filled by O’Neill. She was named CEO in April but isn’t starting until September because of a non-compete with her previous employer, Nike Inc. She has been considering new ways to organize Lululemon’s C-suite, including the creation of new positions, according to a person familiar with the matter who asked not to be named discussing confidential discussions.
O’Neill will immediately face pressure to revive sales at the upscale apparel brand while winning back excitement on Wall Street, which for years became used to breakneck growth rates. That performance has been eroded by competition from emerging brands such as Vuori and Alo and missteps including see-through yoga pants.
Analysts including Poonam Goyal of Bloomberg Intelligence have expressed concern about executive upheaval at Lululemon ahead of O’Neill’s arrival.
“Lululemon’s chief AI and technology officer leaving after less than a year adds to concerns that the retailer’s turnaround is still struggling to find stability,” Goyal wrote on Aug. 13 following the departure of Das. “The issue isn’t AI, but repeated leadership resets at a time when the company needs sharper execution.”
The company “has talented teams and leaders in place across the organization who remain focused on serving our guests and advancing the business during this transition,” Lululemon said on Wednesday. “As always, we will continue to invest in the talent and capabilities needed to deliver on our compelling long-term opportunity.”
The shares rose 0.6% at 2:14 p.m. in New York trading. The stock has dropped 42% so far this year, compared with a nearly 13% gain for the S&P 500 Index.
(Adds share move, analyst commentary and details.)
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