A new CEO could set the stage for a turnaround.Lululemon Athletica's (LULU +9.49%) stock has been a lemon for most of 2025, but the stock has rallied over the past month. The biggest jump came after the company reported solid fiscal Q3 results and announced that it was looking for a new CEO. Even after its gains, the stock is still down about 45% on the year, as of this writing.Let's take a closer look at the brand's results and prospects to see if the stock can continue to rebound. Looking for a turnaround ...

Core Insights - Lululemon's CEO Calvin McDonald is stepping down after nearly six years amid declining performance and market challenges [3][4][17] - The company is facing increased competition in the athleisure market, which it no longer dominates, leading to a strategic reset [3][5][18] Leadership Changes - McDonald will remain as a senior advisor until March 31, while Marti Morfitt will take on the role of executive chair [5] - The board is seeking a new CEO with experience in guiding companies through growth and transformation [5][18] Financial Performance - Lululemon reported earnings per share of $2.59, exceeding expectations, but provided disappointing guidance for the holiday quarter [6][7] - Net income fell to $306.84 million from $351.87 million year-over-year, despite revenue growth from $2.4 billion to $2.57 billion [7] Market Dynamics - The company's revenue in the Americas declined by 2%, with comparable sales down 5%, while international revenue surged by around 33% [10][11] - The athleisure market is maturing, with shifting consumer preferences impacting Lululemon's sales [12][13] Competitive Landscape - Emerging brands like Vuori and Gymshark are gaining traction, challenging Lululemon's market position [13][14] - Lululemon's attempts to diversify its product offerings have not resonated as strongly as previous successful launches [15] Operational Challenges - The company has faced operational headwinds due to new tariffs, which are projected to reduce profits by $210 million [16] - Despite these challenges, Lululemon's brand remains strong, and its international business shows potential for growth [17]

Lululemon will struggle to find a new CEO who can address the athleisure retailer's long list of issues, writes @AndreaFelsted (via @opinion) https://t.co/AEURjMJiaa ...

NEW YORK (AP) — Lululemon Athletica Inc, (LULU) said Thursday that its CEO Calvin McDonald is stepping down effective Jan. 31 as the athletic wear maker wrestles with a year of disappointing sales. The company, based in Vancouver, Canada, said that McDonald and the board are working together to manage a “smooth transition,” and he will serve as a senior advisor to the company through March 31, 2026. The board said it was conducting a comprehensive search in partnership with a leading executive search fi ...

Calvin McDonald, CEO of lululemon athletica inc., is interviewed by CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 29, 2023.Lululemon announced Thursday its CEO Calvin McDonald will step down effective Jan. 31 following a year of underperformance at the athleisure company. The company's board of directors is conducting a search process with a "leading executive search firm" to identify the company's next CEO, it said in a news release. McDonald will stay on as a senior ...

Lululemon Athletica's stock price has plummeted this year, but a comeback might be in the works.Why is famed investor Michael Burry going long on Lululemon Athletica (LULU +3.49%)? The guy who was one of the inspirations for the book and later the film "The Big Short" says it's because the stock for this upscale athletic apparel retailer and manufacturer has been oversold and is now a bargain, according to recent statements in his newsletter, Cassandra Unchained. Lululemon needs a comebackWhether he's righ ...

Core Insights - Lululemon Athletica has been a strong and profitable player in retail for over a decade, known for its premium brand and enviable margins [1] - Recent challenges include slowing growth, margin pressure, and a significant stock rerating that has affected investor confidence [1][2] Business Model - Lululemon's success is attributed to its disciplined business model, selling performance apparel at premium prices while controlling distribution through company-owned stores and a robust online presence [3] - The company has expanded its product offerings beyond yoga to include men's clothing, running, training, and everyday athleisure, transforming it into a global lifestyle brand [4] Current Challenges - U.S. sales have shown signs of cooling, with the Americas region experiencing a 4% decrease in comparable sales in the latest quarter, indicating cautious consumer behavior [7] - Margin pressure is increasing due to new U.S. tariff rules and higher import costs, which are compressing profitability and reducing earnings leverage [8]

Core Insights - Lululemon Athletica's shares have declined 55% this year due to soft consumer spending and weak sales growth, a trend also seen in other retail brands like Nike [1][2] - The brand's reliance on athleisure and fashion-oriented apparel raises risks related to shifting style preferences, but this presents an opportunity for investors to buy at a low valuation [2] - Revenue growth has decelerated to 6.5% year over year in the fiscal second quarter, attributed to a stale assortment lacking newness in key categories [3] - International expansion remains strong, with revenue growing at double-digit rates, indicating positive long-term prospects [3] - Management is adjusting the product assortment to balance new and core styles, though improvements in sales growth may take several quarters [4] Financial Data - Current stock price is $169.61, with a market cap of $20 billion [5][6] - Full-year revenue growth guidance is between 3% and 4%, indicating further deceleration in the holiday quarter [6] - Earnings per share are expected to decline by about 12% this year, projected between $12.77 and $12.97 [6] - The stock is trading at a forward price-to-earnings multiple of around 13, reflecting pessimistic long-term growth assumptions [7]

Core Insights - Lululemon Athletica Inc has partnered with the NFL and Fanatics to launch an apparel collection for all 32 teams, leading to a 2.7% increase in stock price to $183.27 [1] - Despite a 52% year-to-date deficit, the stock is currently trading 15% above its five-year low of $159.25 reached on September 15 [2] - Short interest has decreased by 4.6% recently, but still represents 8% of the stock's float, indicating a potential for short covering [2] Trading Activity - The stock has seen a higher than usual interest in put options, with a 10-day put/call volume ratio of 1.14, ranking higher than 91% of readings from the past year [3] - There has been a notable increase in call options trading, with 22,000 calls exchanged today, particularly at the 185- and 190-strike levels [4] - Options are currently considered affordable, with a Schaeffer's Volatility Index (SVI) of 40%, placing it in the 17th percentile of annual readings [5]

Core Insights - Lululemon Athletica has experienced a significant decline in stock value, with shares down 54% in 2025 as of September 26, leading to a loss of investor confidence [1] - The company's forward price-to-earnings (P/E) ratio stands at 13.4, which is considerably lower than the S&P 500's 21.8, indicating a potential undervaluation [1] Financial Performance - The company reported disappointing financial results for Q1 and Q2, with same-store sales increasing by only 1% in each quarter [4] - Revenue growth expectations for fiscal 2025 were initially set at 7.5% but were later revised down to 5%, with diluted earnings per share projected to drop by 14.5% [5] Market Challenges - Lululemon faces macroeconomic headwinds, particularly due to changes in U.S. trade policy and tariffs, which are beyond the company's control [6] - The athletic apparel industry is highly competitive, with rivals like Alo Yoga, Vuori, and Gap's Athleta vying for market share [7] Strategic Responses - The company is implementing strategies such as raising prices and improving supply chain efficiencies to navigate current challenges [6] - Product innovation has been identified as a priority by management to regain market share [7] Brand Strength - Despite current challenges, Lululemon maintains a strong brand presence, supported by a high average gross margin of 57.5% over the past five years, indicating robust pricing power [10] - The premium nature of the brand suggests potential for continued strong profits, even in a tough market environment [9][10]