What shareholders really want from Lululemon’s new CEO Calvin McDonald
Farla Efros' take on on Lululemon’s new CEO in BNN Bloomberg.
Shares in Lululemon Athletica Inc. may be climbing, but as the Canadian yogawear brand’s new chief executive Calvin McDonald makes his debut, investors will be looking for one key thing: stability.
While Lululemon’s stock (LULU.O) has more than doubled in the last 12 months and total comparable sales jumped 19 per cent through April, the company has been without a permanent CEO since February when Laurent Potdevin abruptly departed due to improper conduct. The exit set off the Vancouver-based company’s second CEO search in four years.
“Investors are looking for stability – somebody very strong at the helm of the organization, somebody that can lead them through their growth plan,” said Farla Efros, president of HRC Retail Advisory, in a telephone interview with BNN Bloomberg.
“There was an interim CEO there but given the growth plan … it’s important that they have someone full-time and on-the-ground to lead them to that next stage in their life.”