Lululemon Reshapes Design Leadership as North America Sales Stall

Quick Facts

Jonathan Cheung, formerly SVP of Design at Levi’s, now serves as Lululemon’s Global Creative Director, reporting directly to the CEO.
JJ Collier joined as VP of Design for Outerwear, a newly created role, after founding his own design consultancy and leading technical apparel at VF Corp.
Lululemon’s stock dropped roughly 40% in 2026, and the company cut its fiscal 2026 revenue outlook to between $11 billion and $11.15 billion.

Lululemon is rebuilding its design leadership as the company faces its steepest sales slowdown in years. The Vancouver-based athletic apparel brand has brought in two senior creative hires and restructured its product organization to respond to weakening demand in North America.

Jonathan Cheung joined as Global Creative Director following the death of Phil Dickinson last May. Cheung brings 30 years of experience across brand and product design, including a stint as SVP of Design and Design Innovation at Levi’s. He has also consulted for Gap Inc., Mattel Inc., Merrell, and Pangaia, and earlier in his career worked for Franco Moschino and Giorgio Armani.

“I’ve been forever fascinated by physical culture and design, so Lululemon feels like a calling,” Cheung said in a statement tied to his appointment.

In a newly created role, JJ Collier joined as Vice President of Design for Outerwear, overseeing both men’s and women’s lines. Collier previously founded Collier Brands, a design consultancy serving outdoor and lifestyle labels. Before that, he spent 20 years in senior roles at Salomon, Ralph Lauren’s RLX line, Spyder Active Sports, and VF Corp., where he led sustainable design for The North Face, Vans, Timberland, Dickies, and Altra.

“We have a unique opportunity to push the boundaries of innovation in outerwear design and change the market and industry in the process,” Collier said.

The hires came alongside a broader restructuring announced in May 2024. Sun Choe, Lululemon’s Chief Product Officer, resigned at that time. The company did not replace the role. Instead, Cheung was elevated to report directly to CEO Calvin McDonald, taking ownership of the design, innovation, and product development roadmap.

Nikki Neuburger was named Chief Brand and Product Activation Officer, adding Merchandising, Footwear, and Product Operations to her existing brand responsibilities. Chief Merchandising Officer Elizabeth Binder now reports to Neuburger.

The restructuring comes as Lululemon confronts a sharp deceleration in its core market. North America revenue grew just 1% in Q2 fiscal 2025, with comparable sales down 4%. International sales climbed 22% over the same period, with comps up 15%, partially offsetting the domestic weakness.

For full fiscal year 2025, total net revenue reached $11.10 billion, a 5% increase year-over-year. But gross margin contracted 260 basis points to 56.6%, and operating income fell 12% to $2.20 billion. The company now expects fiscal 2026 revenue of between $11 billion and $11.15 billion, down from a prior range of $11.35 billion to $11.50 billion. Lululemon’s stock has fallen roughly 40% in 2026.

McDonald acknowledged the product strategy had missed. “We have become too predictable within our casual offerings and missed opportunities to create new trends,” he said. “Consumers are spending less on apparel overall, spending less on performance activewear, and are being more selective in their purchases, seeking out truly new styles.”

Analysts at William Blair pointed to lounge and social categories, which together represent about 40% of Lululemon’s product mix, as the primary drag. Analyst Sharon Zackfia wrote that “product cycles that have run too long” created fatigue among high-value, long-term customers, and that those same categories face pressure from emerging competitors.

Men’s apparel now accounts for 24% of total revenue, up from near zero a decade ago. Women’s apparel still leads at 63%, with accessories at 13%. The company also faces a projected $240 million tariff impact in fiscal 2025, equal to 220 basis points of pressure.

Lululemon’s redesigned leadership structure places creative direction closer to the top of the organization. Whether Cheung and Collier can refresh product lines fast enough to reverse the North American slide will define the brand’s next phase.