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Lululemon Lost Its Cool—Can Nike’s Former Star Save The Brand?

Lululemon Athletica has gone from one of retail’s most coveted growth stories to one of its most dramatic reversals. The stock, which closed at $511.29 in December 2023, recently traded near levels last seen in 2018 after losing more than 80% from that peak. The underlying business has weakened as well: second-quarter revenue declined 4%, North American sales fell 8%, comparable sales dropped 10% globally, and management cut its full-year outlook. The challenge is no longer simply slower consumer spending. Management has acknowledged pressure on brand sentiment, traffic, product newness and conversion at a time when Alo, Vuori and other competitors are fighting for the same premium activewear customer. Incoming CEO Heidi O’Neill, a longtime Nike executive, therefore inherits a brand that still commands loyalty and global recognition but must prove it can regain product relevance.