Lululemon hires new product officer from Kmart

Lululemon hires new chief product officer from Kmart following pants problem

Associated Press

Lululemon has hired a new chief product officer, bringing in a Kmart leader to help fill a role left vacant after its see-through yoga pants snafu.

The yoga-inspired clothing company said Wednesday that it has hired Tara Poseley, president of Kmart Apparel, part of Sears Holdings Corp. Poseley has also worked in top leadership roles at retailers Bebe Stores Inc., Disney Stores North America and Design Within Reach.

Lululemon's former chief product officer, Sheree Waterson, left the company in April, shortly after the company had to pull some of its pricey yoga pants from shelves after finding they were too sheer. The company blamed the issue on a style change and production problems.

The pants problem cost the company millions in revenue in addition to the public embarrassment.

Lululemon said that Poseley has tremendous experience that will enhance its leadership team and improve its merchandising.

The company is also looking for a new CEO. Its current chief executive, Christine Day, said she would stay at the Canadian company until a successor was named.

Shares of Lululemon Athletica Inc. fell $1.54 to $71.71 by midmorning.

The company's stock fell but quickly recovered after the pants problem was announced, but shares took a sharp plunge after its CEO announced her plans to depart from which it has yet to fully rebound.

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