What to Expect as Heidi O’Neill Joins as CEO? Expert Call Takeaways

Research evidence excerpt

What to Expect as Heidi O’Neill Joins as CEO? Expert Call Takeaways

t, shaped largely by the leaders above her — on one hand, this signals her Shares Out (mil) 124.7

adaptability and responsiveness to organizational priorities, at the same time, this could Market Cap. (mil) US$15,807.0

call into question her ability to cultivate culture from the top down. Avg Daily Vol (000) 2,950

Book Value/Share US$20.42

Price/Book 621%

• Operations: can O'Neill grow into an operator? While O'Neill navigated some Institutional Ownership 8.0%

operational challenges at Nike (including overseeing women's retail store rollout that Net Cash Per Share US$7.63

was ultimately wound down), our expert views her as likely disciplined with future growth Debt to Total Capital 0.0%

and potentially embarking on real estate rationalization. While strategic direction with Div (ann) US$0.00

NKE's DTC missteps was set at the top, O'Neill still carried responsibility as President. Fiscal Year End Jan

O'Neill is described as a creative "blue sky" thinker, with some wins at NKE around

large-scale reinvention which may not be the correct approach at LULU; that said, our Price Performance - 1 Year

expert believes she would take decisive action once a problem is diagnosed, including USD

willingness to make leadership changes where necessary. 350

• Marketing: could see some changes. O'Neill's background is strongest in branding

and marketing, as she started her career in advertising and oversaw brand strategy 250

in various roles at Nike; our expert saw O'Neill as hungry to create a more authentic 200

connection with the consumer (a challenge given Nike's scale), so LULU should present

a more clear path to success in that realm. LULU's marketing as % of sales is far below 150