Guggenheim analyst Simeon Siegel notes that Lululemon (LULU) announced Heidi O’Neill as the company’s new CEO in “what we expect will come as a surprise to many investors” based on the firm’s discussions. While the firm looks forward to hearing O’Neill’s plan, it fears Lululemon “remains a strong, but overstretched, brand” and its analysis suggests a necessary revenue reset will drive more profit and loss statement pressures than savings, keeping Guggenheim cautious. The firm maintains a Neutral rating on Lululemon shares with no price target
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