Chip Wilson, founder of Lululemon Athletica inc. (NASDAQ:LULU) and a holder of 14.5 percent of the outstanding shares of the company, today announced that he exercised his board nomination rights to appoint Kathryn Henry to the lululemon board of directors.
“It’s a great day for lululemon employees and shareholders,” Mr. Wilson said. “The appointment of Kathryn to the board is an important first step in the implementation of changes that are needed with respect to culture and knowledge of technical vertical retailing. Kathryn is intimately familiar with the company, having served as lululemon’s Chief Information Officer, and SVP Distribution Logistics. She understands both the company’s business and the importance of its culture—a culture that provided best in class financial metrics.”
“I also continue to believe changes are needed with respect to corporate governance,” he said.
Ms. Henry was originally recruited by lululemon as CIO in 2010 and was responsible for building IT organization and business operating capabilities in support of company growth across all channels, brands and geographies. Her role was expanded to include responsibility for global logistics and distribution and during her tenure, Ms. Henry built teams across IT, distribution and logistics that contributed to lululemon’s historical growth. While at the company, Ms. Henry built strategic vendor relationships and led establishment of the company’s eCommerce foundation that contributed revenue growth of more than 300% while delivering over $16 million in annual savings.
“In addition to her understanding of technical omni-channel retailing, Kathryn will bring to the board an understanding and appreciation of the soft side of the business — the un-measurable factors that made lululemon great and unique, such as culture and training,” Mr. Wilson added. (Original Source)
Shares of Lululemon Athletica closed yesterday at $62.01. LULU has a 1-year high of $70 and a 1-year low of $43.14. The stock’s 50-day moving average is $55.23 and its 200-day moving average is $55.19.
On the ratings front, LULU has been the subject of a number of recent research reports. In a report issued on January 29, Credit Suisse analyst Christian Buss maintained a Buy rating on LULU, with a price target of $66, which represents a potential upside of 6.4% from where the stock is currently trading. Separately, on January 25, Jefferies Co.’s Randal Konik maintained a Buy rating on the stock and has a price target of $71.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christian Buss and Randal Konik have a total average return of 5.2% and -3.1% respectively. Buss has a success rate of 59.2% and is ranked #641 out of 3600 analysts, while Konik has a success rate of 39.6% and is ranked #3055.
The street is mostly Bullish on LULU stock. Out of 18 analysts who cover the stock, 12 suggest a Buy rating , 5 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $61.27, which represents a slight downside potential from current levels.
Lululemon Athletica Inc is a designer and retailer of technical athletic apparel operating in North America and Australia. Its yoga-inspired apparel is marketed under the lululemon athletica and ivivva athletica brand names.