There’s a management shake-up at Lululemon Athletica Inc.

Lululemon, which has been suffering from revenue declines and shrinking profitability, said Wednesday that Maggie Gauger has been named president and chief product officer. Gauger formerly ran Athleta as its chief executive officer and global brand president. Athleta, a division of Gap Inc., is a direct competitor of Lululemon.

Lululemon also disclosed that Joseph Godsey has been appointed chief operating officer. Gauger and Godsey are both taking on newly created roles, effective Oct. 26, the company said.

With these changes, Lululemon also said Nikki Neuburger, chief brand and product activation officer, and Ted Dagnese, chief supply chain officer, will leave the company “to pursue other opportunities.” Both will depart on Nov. 6 and help with a transition.

Further management changes are expected with searches underway for a chief brand officer, chief communications officer and chief technology officer.

Lululemon’s second-quarter sales fell 4 percent to $2.4 billion with a 12 percent comparable sales drop in the Americas and a 3 percent decline internationally. And even with a $134.5 million boost from tariff refunds, profits dropped 11.2 percent to $329.2 million. In 2025, net revenue increased 5 percent to $11.1 billion and income from operations decreased 12 percent to $2.2 billion.

“Lululemon is a rare, extraordinary brand, but we have work to do to build a stronger and more competitive company,” Heidi O’Neill, the brand’s CEO, said in a statement Wednesday. “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. 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.

“Developing stronger connections between brand, product and the guest experience will support a unified approach across these core elements of the business,” O’Neill added. “This is an important first step in reinvigorating our enduring connection with guests and is designed to establish the foundation for sustainable, long-term growth. As part of this evolution, I want to thank Nikki and Ted for their significant contributions to Lululemon. We are grateful for their leadership and commitment to our people, guests and brand, and wish them every success in their future endeavors.”

At Athleta, Gauger is being succeeded on an interim basis by Erika Everett, the brand’s current chief marketing officer. A spokesperson said in a statement that Everett “will provide interim oversight and support for the Athleta team, reporting to Richard Dickson, president and CEO of Gap Inc.”

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

Gauger’s departure is a blow to Gap Inc., which for several seasons has been working to turn around Athleta. It reported 2025 sales down 10 percent to $1.2 billion. For the second quarter of this year, the brand saw sales drop 12 percent to $264 million. When the second quarter was reported, Dickson said that Athleta “remains our rebuild brand. The priority is to restore the momentum and restore it into a stronger foundation for long-term growth. Despite the challenging top line, we’re actually making some really good progress. We’re running leaner inventories and a leaner assortment, which is driving higher productivity in turns. We are doing much less discounting and more regular-price selling, which is also driving a healthier margin. We’ve got some great customer acceptance on the new product, particularly the Journey Collection, which was a six-piece collection focused on travel and wardrobing. We recently brought in new talent in digital and merchandising.”