Home » Behavioural Investing » $LULU Sheer Transparency Shows Weak Management

$LULU Sheer Transparency Shows Weak Management

Lululemon (Nasdaq:LULU) stretched fashion too far and tried to sell a yoga pant which is too sheer for general community use. A full refund is offered. The initial word is a supplier made a mistake. The supplier has worked with Lululemon before.

So Lululemon has a production quality control problem and relies blindly on its supply chain. Now the stock has blown off its quarterly earnings and confusion abounds. The mistake is unacceptable. Lululemon took its eye off the ball and went to sleep. you cannot do that with vendors and supply chain management. In the world of fashion apparel the faux pas is death. Watch for several executives to start looking for work and here is why. The board has several retail savvy directors. They should know which questions to ask. Look for the following to offer some leadership:

Brad Martin 60. Director since 2007. CEO of Saks 1989-2006 and a director of Dillards. Gotta be shaking his head and having a WTF moment.

Michael Casey 66 Director since 2007. He retired from Starbucks as the CFO. starbucks buys its coffee all around the world and knows supply chain.

Robert Bensoussan. Fmr CEO of Jimmy Choo and now an investor in brands and retail. Jimmy Choo pedigree is hard to argue with.

Jerry Stritzke 51 President and CEO of Coach since 2008. Previously held several executive positions with Limited Brands.

You have to remember this is the same company who attempted to market a T-shirt which had supposed transdermal properties until the New York Times busted them with the help of some rigorous scientific analysis.

Then there was the Ann Rand shopping bag thing which is so unlike Yoga. But we all knew that.

So these retail guru’s are gonna take care of business. Right. I mean if they can’t who can? Like all these yoga women were going to be accidentally naked.

George Gutowski writes from a caveat emptor perspective. Follow him on twitter@financialskepti or maybe follow his evil twin who is writing a Wall Street Murder Thriller at twitter@georgegutowski

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