Lululemon up and down as investors digest new direction

|About: Lululemon Athletica Inc. (LULU)|By:, SA News Editor

Shares of Lululemon (LULU +0.2%) are having a very bouncy day off the news the retailer found a new CEO.

The entrance of Lauren Potdevin to the top job at Lululemon is being overshadowed a bit by the exit of founder Chip Wilson who created a stinging backlash and potential overhang with his disparaging comments on the size of women's bodies.

Looking forward, Credit Suisse say the experience of Potdevin at Toms is a positive for the lifestyle brand.

Lululemon trades 14% off its YTD high, but some traders think the CEO hole was keeping the stock range-bound. Positive pricing checks on the retailer's holiday mix and a vibrant online business supports the case that margins are holding up.