Lululemon Stock Is Sliding Wednesday: What's Going On?

Lululemon Athletica Inc LULU shares are trading lower Wednesday after the company announced an updated operational structure following the resignation of its chief product officer.

What Happened: After the market close on Tuesday, Lululemon announced that chief product officer Sun Choe has resigned from his role and will depart the company later this month to pursue other opportunities.

Lululemon said it does not intend to replace Choe’s role. Instead, the company plans to implement organizational changes intended to accelerate product innovation and support long-term growth plans.

Global creative director Jonathan Cheung will report to CEO Calvin McDonald and drive the product design and innovation roadmap for Lululemon, effective immediately.

The company will also create a new team of leaders from its merchandising and brand functions to scale its go-to-market strategies. Nikki Neuburger will become chief brand and product activation officer, and chief merchandising officer Elizabeth Binder will report to Neuburger.

“Looking ahead, I am confident in the strength of our Design, Merchandising, and Brand teams, and excited by how the new structure will enable us to solve for the unmet needs of our guests in a more efficient, unique, and powerful way,” McDonald said.

Following the management changes, Telsey Advisory Group analyst Dana Telsey maintained Lululemon with an Outperform rating and price target of $550.

Lululemon also scheduled its first-quarter earnings results for June 5. Analysts expect the company to report earnings of $2.39 per share and revenue of $2.2 billion, according to estimates from Benzinga Pro.

See Also: What’s Going On With ChargePoint Stock After Collaborating With Airbnb?

LULU Price Action: Lululemon shares were down 3.55% at $311.50 at the time of publication, according to Benzinga Pro.

Photo: m01229 from Flickr.