Lululemon shares dropped as much as 7% in postmarket trading. The shares had fallen more than 21% so far this year as of Wednesday’s close.
O’Neill arrives with a series of fires to put out. Recent product mishaps, including selling leggings that were see-through, and a disappointing sales outlook, have left investors concerned that the company can pull itself out of a rut. Sales growth has slowed since losing share to trendier competitors.
Lululemon’s founder, Chip Wilson, who no longer has a formal role with the company but is one of its biggest shareholders, has also publicly criticized the company and pushed for changes on its board.
