Lululemon’s New CEO Has Ties to One of Nike’s Biggest Missteps

There was a noticeable absence at Lululemon Athletica Inc.’s all-hands meeting Wednesday, following the announcement of a new chief executive officer: The new hire herself.

Incoming CEO Heidi O’Neill wasn’t there, according to a person familiar who wasn’t authorized to speak publicly about the meeting. She won’t be starting until September, due to an agreement she had signed with her prior employer, Nike Inc., that prevents her from working at a competitor for a specified period, a Lululemon company spokesperson said.

In addition to the delayed start, O’Neill’s Nike history is raising questions among investors, whose patience with ...