Proactive Investors - lululemon (NASDAQ:LULU) shares fell more than 7% after the athleisure brand announced it is updating its organizational structure along with the departure of its chief product officer Sun Choe, who is leaving to pursue another opportunity.
“The strategic organizational changes are intended to support the company’s near- and long-term growth plans, accelerate product innovation, and further enable its go-to-market strategies,” lululemon said in a statement.
The company said it does not intend to replace the role of chief product officer. Global creative director Jonathan Cheung will now report to CEO Calvin McDonald and be responsible for product development, design and innovation.
The company said it will also create a new team made up of leaders from its merchandising and brand units to scale its global and regional go-to-market strategies.
“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.
Wednesday’s announcement added to building investor concerns about lululemon, which like other retailers has struggled with declining sales and inventory management challenges.
lululemon shares traded down 7.1% at $300 mid-morning on Wednesday.