Supply Chain Matters provides another update to our ongoing commentaries related to Lululemon Athletica and its recent supply chain snafu involving production of its most popular line of yoga pants for women.
The Wall Street Journal and other business media report that Lululemon has recruited a senior Sears Holdings executive to be its new product leadership director. Tara Poseley, previously the president of apparel for Sears is expected to assume the role of Chief Products Officer by December 31. Ms. Poseley will assume the role vacated when Lulu’s prior product chief departed soon after the March product recall, and her responsibilities are reported to be merchandising, product design and strategic planning.
Lululemon is also seeking a new CEO after the current CEO, Christine Day, announced in May of her intention to leave the company. In its reporting the WSJ cites a source as indicating that some currently employed retail executives have expressed interest in leading Lululemon but are unwilling to commit before the end of the holidays. That has a lot to do with receiving their executive bonuses for the year.
The implication to these latest developments is that Lululemon will have to continue to make the best of the upcoming holiday quarter while still experiencing the effects of the prior high visibility product recall and resulting inventory shortages. A new cadre of management is not likely to make its presence until sometime in 2014.
Lululemon stock remains down 4 percent on the year, another reinforcement of how major supply chain glitches can rattle investor confidence.