A Nike and Athleta store.
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Gap’s Athleta has tapped the head of Nike’s women’s business in North America as its next CEO, delivering a blow to the sneaker company as it tries to win back more female shoppers.
Maggie Gauger, who has spent more than 20 years at Nike, is the third CEO hired to helm Athleta in the last two years as the women’s athleisure brand’s sales decline. She’ll replace Chris Blakeslee, the former Alo Yoga executive who was hired to replace Mary Beth Laughton in 2023.
Under Blakeslee’s direction, Athleta partnered with high-profile athletes such as swimmer Katie Ledecky and WNBA star Kate Martin, and won over new shoppers with different types of products. However, the strategy has not translated with Athleta’s existing customer base. For four out of the past six quarters, the brand’s revenue and comparable sales dropped, which dragged down its parent company’s overall performance.
“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,” Gap CEO Richard Dickson said in a news release.
“We are thrilled for Maggie Gauger to join as CEO of Athleta as we look to accelerate the brand’s reinvigoration. Maggie blends proven business transformation capabilities, deep consumer centricity, product fluency, and a heartfelt commitment to empowering women and girls. This combination of skills and experiences will equip her to lead Athleta into its next chapter of growth.”
Gauger’s decision to become Athleta’s next CEO is a big win for a brand so squarely focused on serving female shoppers, but a major loss for Nike at a pivotal time for the sneaker giant.
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.
In its first Super Bowl ad in decades, Nike targeted female athletes in its “So Win” campaign. It later announced it would be partner with Kim Kardashian’s activewear line Skims as it looked to get an edge over competitors such as Athleta, Alo Yoga and Vuori.
Nike has said previously that about 40% of its customers are women, but most apparel brands prefer to have more female consumers than male because they tend to shop more and spend more on clothes. Plus, the gender gap has given Nike’s competitors a foothold in the athletic apparel business, which could be a growth area for the company.
Gauger was in charge of closing that gender gap in Nike’s most important market, but now that work will fall to a new leader, adding another layer of transition at a vulnerable time for company.
Gauger is slated to take on the new role on Aug. 1 and Blakeslee will stay on as an advisor to “support a smooth transition,” the company said in a press release. Nike did not respond to CNBC’s request for comment.
