- Athleta poached top Nike executive Maggie Gauger to become its next CEO its third in two years.
- Gauger led Nike’s women’s business in North America and her departure is a blow to the sneaker giant, which is trying to grow its women’s segment.
- Since Elliott Hill took the helm of Nike last fall, he has made the women’s business a central part of his strategy as he works to turn around the business and return it to growth.
The gapsAthleta has dealt a blow to the shoe firm as it attempts to regain the support of more female consumers by appointing the leader of Nike’s women’s business in North America as its next CEO.
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Given the drop in sales of the women’s athleisure brand, Athleta has had three CEOs in the previous two years, including Maggie Gauger, who has worked at Nike for more than 20 years. She will take over for Chris Blakeslee, a former executive of Alo Yoga who was brought on board in 2023 to succeed Mary Beth Laughton.
Under Blakeslee’s leadership, Athleta teamed up with well-known athletes like WNBA player Kate Martin and swimmer Katie Ledecky, and used a variety of goods to attract new customers. But the approach hasn’t worked with Athleta’s current clientele. The brand’s comparable sales and revenue declined for four of the last six quarters, which hurt the parent company’s overall performance.
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“Over the past two years, Chris has led the early stages of Athleta’s reset, recentering the brand to win with innovative performance product and refining the brand’s point of view, helping to position Athleta for the future,” Richard Dickson, CEO of Gap, stated in a news release
Maggie Gauger’s appointment as Athleta’s CEO is a huge thrill as we aim to hasten the brand’s revitalization. Maggie combines a strong dedication to helping women and girls with her demonstrated business transformation skills, profound customer centricity, and product fluency. She will be well-equipped to guide Athleta into its next phase of expansion because to her blend of abilities and experiences.
Gauger’s choice to take over as CEO of Athleta is a significant victory for a company that is primarily targeted at female consumers, but it is a significant setback for Nike at a critical juncture for the sneaker behemoth.
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Elliott Hill has made the women’s business a key component of his plan since taking over as CEO of Nike last October in an effort to revitalize the company and bring it back to growth.
Nike’s “So Win” campaign, which ran in the Super Bowl for the first time in decades, specifically targeted female athletes. Later, in an attempt to get an advantage over rivals like Athleta, Alo Yoga, and Vuori, it declared that it would collaborate with Kim Kardashian’s athletic brand, Skims.
Although Nike has previously stated that women make up around 40% of their clientele, most clothing companies would rather have more female clients than male ones because women often shop and spend more money on clothing. Additionally, the gender gap has allowed Nike’s rivals to gain traction in the athletic gear market, which may be a growth opportunity for the corporation.
Gauger was responsible for bridging the gender gap in Nike’s most significant market, but now that responsibility will be transferred to a new leader, adding another layer of change at a time when the corporation is already at risk.
According to a press release from the corporation, Blakeslee will continue to serve as an advisor to “support a smooth transition” as Gauger assumes the new position on August 1. A request for comment from CNBC was not answered by Nike.
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