Nike (NKE) has lost the head of its women’s business in North America to rival Athleta, which is owned by the Gap (GAP).
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Maggie Gauger, who has spent more than 20 years at Nike, is leaving the sneaker giant to become CEO of Athleta. She is the third CEO at Athleta in the last two years as the women’s athleisure brand’s sales have steadily declined. Gauger has been hired to turn around Athleta’s fortunes and replaces current CEO Chris Blakeslee, who has led the company since 2023.
For Nike, the loss of Gauger is seen as a blow to the sneaker and athletic apparel company at a time when it is trying to attract more female shoppers and capitalize on the success of women’s sports such as the WNBA and star athletes such as basketball player Caitlin Clark. Since becoming CEO of Nike last autumn, Elliott Hill has made the women’s business a central part of his turnaround strategy.
In its first Super Bowl advertisement in decades this past February, Nike targeted female athletes with its “So Win” campaign. Currently, about 40% of Nike’s customers are women.
Turning Around Athleta
Athleta is also focused on female consumers and has partnered with high-profile athletes such as swimmer Katie Ledecky and WNBA star Kate Martin. However, Athleta has reported a drop in its revenue and comparable sales for four out of the past six quarters, weighing on GAP stock, which is down 14% this year.
“We are thrilled for Maggie Gauger to join as CEO of Athleta as we look to accelerate the brand’s reinvigoration,” said the company in a news release. Gauger is slated to take on the CEO role at Athleta Aug. 1. NKE stock is up 5% on the year.
Is NKE Stock a Buy?
Nike’s stock has a consensus Moderate Buy rating among 30 Wall Street analysts. That rating is based on 17 Buy and 13 Hold recommendations issued in the last three months. The average NKE price target of $78.37 implies 0.03% upside from current levels.
