Key Takeaways
- Lululemon Chief Product Officer Sun Choe resigned as the company announced an organizational restructuring.
- The fashion workout apparel maker said it would not replace the CPO position.
- Shares slumped to their lowest level in more than a year Wednesday.
Shares of Lululemon Athletica (LULU) fell to their lowest level in more than a year Wednesday, a day after the maker of fashion workout clothes shook up its organizational structure and announced the departure of Chief Product Officer Sun Choe.
The company said Choe, who has been CPO for more than five years, was resigning, and would leave later this month “to pursue another opportunity.”
Lululemon noted that its organizational changes are designed to “support the company’s near- and long-term growth plans, accelerate product innovation, and further enable its go-to-market strategies.” It added that it will not replace the CPO position.
Lululemon explained that Global Creative Director Jonathan Cheung would “drive the product design and innovation roadmap,” along with continuing to oversee design, innovation, and product development at the firm.
Slowing Apparel Market, Tough Competition
Several analysts have argued the move is a bad sign for the company, with Randy Konik of Jefferies saying in a CNBC interview that Lululemon faces a slowing apparel market and tough competition, and could crash next year.
Lululemon shares were down about 7% to $299.95 as of 10:21 a.m. ET Wednesday. They have been tumbling since hitting their all-time high of $516.39 at the end of last year.