Prime Highlights
- Maggie Gauger departs Nike to become Athleta’s new CEO as of Aug. 1.
- Athleta experiences third change in two years amidst falling sales.
Key Facts
- Gauger led Nike’s North American women’s business with over 20 years of experience.
- Athleta is struggling to contain eroding performance in the women’s activewear market.
Key Background
Veteran Nike executive Maggie Gauger, most recently senior vice president of North America women’s business, has been appointed Athleta’s CEO and Global Brand President. Her appointment, effective Aug. 1, is a reflection of Gap Inc.’s heightened sense of urgency to put the pedal to the metal on Athleta’s role in women’s activewear. She replaces outgoing CEO Chris Blakeslee, who will be in advisory mode through the transition.
This is the third leadership shift at Athleta in two years, showing the brand is still not capable of stopping its decline in sales. What was once a red-hot upstart in the explosive women’s active category has had to suffer flat same-store sales and quarter-to-quarter declines. The relative performance of the brand has lagged behind peer brands like Old Navy and Banana Republic, which have managed to post more level numbers.
The Gauger hire bolsters the experience-of-the-past-created strategy, product innovation, merchandising, and consumer engagement skills—that is a strength in activewear—for the company. At Nike, she had the responsibility for growth and innovation in women’s business, which came in handy to help build the company leadership in performance apparel and lifestyle wear. She is best suited to restore Athleta’s brand value as she happens to be a consumer-facing executive.
Gap Inc.’s management has placed its confidence in Gauger to regain the brand’s momentum. In order to parry the competition’s call for women’s sports apparel from other competitors like Lululemon and Alo Yoga, Athleta is set to become popular again by simplifying its performance product category and re-focusing on its target customer. Gauger’s recruitment represents a strategic turn towards innovation, diversity, and long-term brand equity. Her position will play an important role in steering Athleta’s vision of empowering women through movement and community onto a stronger business course.
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