Lululemon announced that Maggie Gauger, the current CEO of Athleta, will join the company later this month as president and chief product officer in a newly created position. This move signals a notable leadership shift in the competitive athleisure market. Gauger’s recent career includes a transition from Nike to Athleta just last year. Alongside her appointment, Lululemon has named Joseph Godsey as chief operating officer, while two senior executives, Nikki Neuburger and Ted Dagnese, will depart the company by November.

The addition of Gauger aligns with Lululemon CEO Heidi O’Neill’s strategy to prioritize product, design, and innovation, aiming to create a stronger lineup of distinctive products that enhance customer experiences both in-store and online. O’Neill, who assumed the CEO role only last month, emphasized the importance of a cohesive leadership team focused on execution that benefits customers, communities, and the business overall. This leadership restructuring appears pivotal as Lululemon works to rebound from over a year of underwhelming sales.

Gap, the parent company of Athleta, confirmed Gauger’s departure and announced that Erika Everett, Athleta’s chief marketing officer, will temporarily take charge as CEO. Gap highlighted that this leadership change is part of an ongoing effort to accelerate progress in reshaping Athleta’s brand and positioning it for sustainable growth. The company is focusing on enhancing customer connections and unlocking the full potential of Athleta amid growing competition in the athleisure sector.

In addition to these leadership developments, Lululemon disclosed it is actively seeking new executives to fill critical roles including chief brand officer, chief communications officer, and chief technology officer. These changes come at a crucial time following last month’s appointment of Heidi O’Neill as CEO, as Lululemon aims to strengthen its market position and respond to challenges highlighted by founder Chip Wilson during a recent proxy contest. The company’s moves reflect a broader intent to advance its strategy through targeted talent acquisition and organizational realignment.