Lululemon, now a high-flying stock since going public in July, stepped into some controversy yet again. But this time it didn't have anything to do with having enough seaweed in its clothes; it's regarding CEO Bob Meers' resume.
Writing for Dow Jones's Market Watch, Herb Greenberg claims Meers may have exaggerated his past job history in SEC filings and on Lululemons website. According to his resume, Lululemon rightly reported that Meers worked for Reebok International from 1984 through 1999.
But Greenberg believes it inaccurately shows that Meers was president and CEO of the Reebok brand from 1996 to 1999. Greenberg found that according to past Reebok filings, Meers lost the CEO title in July 1998; two months later, he was replaced as president.
Meers resume also claims he was president of the Rockport and Greg Norman brands. Looking at Reebok filings, Greenberg found that from February 1994 until October 1995, Meers was president of Reeboks Specialty Business Group, which included Rockport and Greg Norman. Rockport and Greg Norman had their own presidents. Greenberg found that Meers only role directly at Rockport was as SVP of sales from December 1988 to July 1990.
Meers and Lululemon have declined to comment on the issue.
In early November, a New York Times article questioned the therapeutic benefits and alleged seaweed content of some of Lululemon yoga clothes. The article came about after an investor shorting Lululemons stock provided his/her own test results to newspapers, prompting the Times to commission its own test. Lululemon insisted that the seaweed content is true, but removed tags from clothes claiming the therapeutic benefits while the situation is reviewed.
