Lululemon product chief departure ‘not a good sign,’ says Jefferies

After Lululemon announced multiple adjustments to its product team and the departure of Chief Product Officer Sun Choe, Jefferies analyst Randal Konik believes this release could signal future top-line growth issues, although the announcement didn’t include a revision to guidance. The firm’s recent store visits have highlighted several issues with the company’s assortment and it continues to expect shares to underperform as the firm believes “business performance has peaked and competition is rising.” Jefferies maintains an Underperform rating and $240 price target on Lululemon shares.