Lululemon (LULU.O) announced the surprise resignation of its Executive Vice-President of Digital, Miguel Almeida on Monday and as if that weren’t enough Macquarie Research has delved deep into its 1990s pop music archives to critique the decision.
In a report released Tuesday to shareholders entitled ‘Color Me Badd’ Macquarie analysts Laurent Vasilescu and Dan Isaacson went puns out in their assessment of the athletic-wear retailer’s weak start to the year in the digital space.
Citing 'N Sync, Boyz II Men, Salt-N-Pepa and TLC along with the titular new jack swingers (responsible for the 1992 jam “I Wanna Sex You Up”), Macquarie delved into some of the factors that led to Lulu’s online shortcomings as well as Almeida’s sudden leave.
“Miguel’s ‘Bye Bye Bye' suggests to us his departure wasn’t in sync with Lulu’s plans,” Vasilescu and Isaacson wrote. “It was abrupt considering he joined in July 2015.”
Reasons cited by Macquarie included inexperience among some of the company’s executives, a drab colour palette among recent offering and slumping sales in key North American markets.
Despite Macquarie’s one-hit wonderment they do not see the digital blip marking the end of the road for Lulu. There was no change to the firm’s earnings and target price outlook, maintaining the company at US$40.