Lululemon just added Chip Bergh, a former Levi's CEO and Swiffer mop creator, to its board

It's casual to look past a caller committee summation for ailing Lululemon (LULU).

But the quality warrants different look.

Lululemon said precocious Tuesday it's adding erstwhile Levi's (LEVI) CEO Chip Bergh to its board. Bergh — the existent seat of computing elephantine HP (HPQ) and creator of the Swiffer mop portion an exec astatine Procter & Gamble (PG) — volition win David Mussafer successful the position.

Bergh, known for wearing his Levi's jeans successful the ablution to springiness them a wash, is simply a large triumph for Lululemon.

His 12-year tenure arsenic Levi's CEO (2011–2024) is wide regarded arsenic 1 of the astir palmy firm turnarounds successful modern retail.

Bergh transformed a stagnating "heritage" marque into a global, digital-first manner leader.

His cardinal achievements see a fiscal turnaround and the 2019 IPO, a determination distant from section stores, the revitalization of the women's business, and the acquisition of Beyond Yoga successful 2021.

"When I joined the company, we were fundamentally a men's denim bottoms concern sold successful US wholesale ... aft I joined, we enactment a strategy successful spot that fundamentally was to support our profitable halfway business, which is that men's bottoms business, but to statesman to grow the Levi's marque and Levi's portfolio further," Bergh told maine conscionable earlier helium retired arsenic Levi's CEO connected Jan. 29, 2024.

"We needed daze absorbers to sorb each of the imaginable disruption that could beryllium coming," helium added.

Bergh is arguably parachuting into rockier waters astatine Lululemon than erstwhile helium joined Levi's.

The company's concern strategy is being grilled by outspoken laminitis and large shareholder Chip Wilson. His nationalist ripping of Lululemon's strategy precocious led to the departure of CEO Calvin McDonald and the accomplishment of feared activistic capitalist Elliott Management arsenic a shareholder.

Lululemon banal has crashed 51% successful the past year.

Lululemon is being led connected an interim ground by co-CEOs Meghan Frank and André Maestrini. One root said Lululemon would similar to find an outer prosecute to presume the CEO presumption full-time.

Meanwhile, the brand's once-formidable marketplace stock successful sportswear has been eroded by predominant merchandise missteps nether McDonald. The deficiency of accordant execution has led to the increasing popularity of newer sportswear brands similar Alo and Vuori.

Lululemon reported that 4th fourth income successful the Americas fell 4% — US income dropped 6%, portion Canada roseate 1%. First 4th EPS guidance clocked successful astatine $1.63 to $1.68. The Street was looking for EPS of $2.09.

"Still downward canine ... thing to get excited astir present yet. CEO prime is key," Jefferies expert Randy Konik said successful a note. "We proceed to presumption the CEO spread arsenic the biggest overhang. The committee says it is moving a robust hunt process, and provided nary timing. Until a credible CEO is successful spot to reset strategy, org design, and accountability (especially successful North America) investors are near underwriting hope."