3 Things You Need to Know Before Lululemon Reports Earnings Tomorrowhttp://www.fool.com/investing/general/2013/12/11/3-things-you-need-to-know-before-lululemon-reports.aspx Tamara Walsh
December 11, 2013
lululemon athletica (NASDAQ: LULU) is set to report third-quarter earnings on Thursday, which will give investors a much-needed glimpse into the health of its business. But the yogawear retailer gave the markets something else to talk about ahead of its earnings release: a new CEO. On Tuesday, Lululemon announced that Laurent Potdevin would take over the helm from Christine Day, as soon as January 2014.
The leadership shuffle comes more than six months after Day said she would be leaving the company for personal reasons. Let's look at what this means for Lululemon going forward, and examine two other things investors should watch for when the company reports tomorrow.
A new Day has come
With Lululemon, Potdevin is set to earn a base salary of $900,000, as well as incentive-based bonuses, according to SEC filings.
Additionally, Lululemon's controversial founder, Chip Wilson, is resigning from chairman of the board of directors. This change can only benefit the company given Wilson's recent public remarks about women's bodies in yoga pants.
Of note is that Lululemon's management announced these leadership changes before the company's earnings. It would have been easy to piggyback the changes onto the company's quarterly results. But releasing the information earlier in the week gave investors a chance to digest the news so the attention can be focused back to the company's quarterly performance tomorrow.