Lululemon Athletica inc. (NASDAQ:LULU) announced strategic changes to its organizational structure that further elevate and reinforce the Company’s design and innovation-driven brand focus.
Lee Holman, formerly Senior Vice President, Women’s, has been appointed as lululemon’s Executive Vice President, Creative Director, effective immediately. In this new role, Mr. Holman will oversee both Men’s and Women’s product design and will report directly to lululemon’s CEO, Laurent Potdevin.
“Standing out requires a fierce commitment to constant innovation in functional performance. Our unwavering dedication to a singular design vision and craftsmanship has made us the global market leader in the category we’ve created and continue to define,” said lululemon’s CEO,Laurent Potdevin. “Changes to the organizational structure, including the new role of Creative Director, are critical to executing upon our 10-year vision,” added Mr. Potdevin.
As a result of these changes, lululemon has eliminated the role of Chief Product Officer. Tara Poseley, who joined the Company in October 2013 as Chief Product Officer, will be leaving the Company after a transition period. “We greatly appreciate Tara’s contributions, including the build-out of strong product, innovation, and merchandising teams, and we wish her continued success in the future,” said Mr. Potdevin.
The establishment of a Creative Director position will further unify Men’s and Women’s design under a singular creative vision, strengthening the design ethos of the brand. Mr. Holman joined lululemon in 2014 with 20 years of design and leadership experience, including senior positions at Nike, where he served as Creative Director of Nike Sportswear and most recently as Vice President of Global Apparel, Innovation and Equipment Design Men’s & Women’s. Prior to Nike, Lee was Creative Director for high profile brands such as Burberry, and spent several years at Abercrombie & Fitch, Levi Strauss & Co, and Paul Smith. Mr. Holman obtained his MA Fashion Design from Central Saint Martins. Felix del Toro, Senior Vice President & General Manager, Men’s, will continue to oversee the Men’s business and will report to Mr. Holman.
Dr. Tom Waller has been promoted to Senior Vice President, Whitespace™ reporting directly to CEO Laurent Potdevin, further reinforcing product R&D and innovation as the core pillar and growth driver for lululemon. Whitespace, lululemon’s team of scientists and engineers, will continue to drive long-term innovation. Prior to joining lululemon in 2012, Dr. Waller was Head of Aqualab at Speedo International. As Director of R&D at Progressive Sports Technologies, he provided strategic consultancy to global brands, as well as federation and elite athletes.
Stuart Haselden, Chief Financial Officer, will assume broader operational responsibilities adding Executive Vice President, Operations to his title. As operational excellence continues to be a key priority, lululemon has begun a search for a newly created position of Chief Supply Chain Officer reporting into Haselden, who will be responsible for continuing to optimize the company’s scalable, global supply chain across multiple categories. (Original Source)
Shares of Lululemon Athletica closed today at $52.00, down $0.93 or 1.76%. LULU has a 1-year high of $70 and a 1-year low of $40.37. The stock’s 50-day moving average is $54.76 and its 200-day moving average is $61.89.
On the ratings front, Lululemon has been the subject of a number of recent research reports. In a report issued on October 16, Credit Suisse analyst Christian Buss upgraded LULU to Buy, with a price target of $64, which represents a potential upside of 20.1% from where the stock is currently trading. Separately, on October 7, Citigroup’s Paul Lejuez assigned a Buy rating to the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christian Buss and Paul Lejuez have a total average return of 4.7% and 17.1% respectively. Buss has a success rate of 57.8% and is ranked #1177 out of 3795 analysts, while Lejuez has a success rate of 63.4% and is ranked #174.
The street is mostly Bullish on LULU stock. Out of 18 analysts who cover the stock, 10 suggest a Buy rating, 6 suggest a Hold and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $63.00, which implies an upside of 18% 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.