An executive from Kmart, the leading US discount chain, has been hired to lead the global merchandise and design team at Lululemon Athletica Inc. Lululemon is currently the fastest growing retailer of first-class workout clothes.
In spring of this year, Lululemon suffered an embarrassing recall of yoga pants. Hoping to cover up the costs, Lululemon has hired a few senior managers but the search for a suitable CEO continues.
On Wednesday, the company announced Tara Poseley, a recent president of Kmart apparel division, as the new chief product officer (CPO). However, a replacement for former CEO, Christine Day, is yet to be announced. Lululemon's unstable stock had already dropped by more than 3.5%.
With regards to the new CPO, Sterne Agee analyst, Sam Poser said, "I thought they were interviewing them both simultaneously and the new CEO would have to sign off on the new CPO. That didn't happen. Hopefully, the new CEO thinks as highly of her as the existing management. That would be the scary part."
Tara Poseley's appointment has offered a positive effect according to Cowen and Co analyst, Faye Landes.
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