BUZZ-Lululemon up after falling 18% in prior session; new CEO takes charge

Shares of athleisure brand Lululemon were up about 2% at $103.12 in afternoon trading.

The company's new CEO Heidi O'Neill, a former Nike executive, has taken charge and shared a message with employees about her plans for the brand.

"I truly believe that we have an incredible opportunity in front of us: to re-establish who we are at our core and, from that foundation, take lululemon into its next chapter. That starts with product," O'Neill said in the letter to employees.

"For the new CEO to come out and address some obvious issues head on is a major show of confidence from her and markets like confidence," said Brian Mulberry, chief market strategist at Zacks Investment Management.

Investors appear to appreciate the frank acknowledgment of the need for change and find the renewed focus on products reassuring, said Neil Saunders, managing director of GlobalData.

Last week Lululemon cut its annual forecasts for the second time, sending shares down about 18% in the previous session.

Up to the last close, the stock was down about 50% year to date.