Piper sees limited visibility following Lululemon’s CEO hire, stays Neutral

Piper Sandler notes that after the close Lululemon (LULU) announced Nike (NKE) veteran Heidi O’Neill as the new CEO. Lululemon traded down after hours as investors likely remember O’Neill most as the key part of John Donahoe’s tenure that was marked by a push towards direct to consumer as well as declining innovation, strained retail partnerships and a falling share price, although she was at Nike during the brand’s heyday as well, Piper argues. The firm is staying Neutral on Lululemon, pointing out that with O’Neill’s September start date and the Board passing on better known to the Street operators like Jane Nielsen, there’s information vacuum regarding what’s next.