Where Will Lululemon Stock Be When the Dust Settles?

Group 1 - The search for Lululemon's next CEO is complicated by the lack of a clear succession plan, pressure from activist investor Elliot Investment Management, and founder Chip Wilson's attempts to replace board members [1] - The new CEO will need to focus on revitalizing the core U.S. business, which has seen a decline in comparable sales by 5% in the third quarter, while the international markets remain strong [2][3] - Lululemon's brand remains powerful, and there is potential for recovery if the company can successfully refresh its product mix, although this may take time due to the ongoing CEO search [5] Group 2 - The company has allowed its core products to stagnate amid increasing competition, and prior plans to decrease product development times and refresh the portfolio were announced before the CEO's resignation [4] - A stock recovery is anticipated in 2026, with the possibility of a clearer business comeback by 2027, as Lululemon stock is currently trading at around 16 times full-year earnings guidance, presenting a good opportunity for investors [6]