Lululemon Sinks 20% After 10% Comp Sales Drop as CEO Delay Deepens Turnaround Crisis
Updated
Updated · Yahoo Finance · Sep 4
Lululemon Sinks 20% After 10% Comp Sales Drop as CEO Delay Deepens Turnaround Crisis
3 articles · Updated · Yahoo Finance · Sep 4
Summary
Lululemon shares fell about 20% after the retailer paired a guidance cut with a weak quarter that included a 10% comparable-sales decline and a 12% drop in North America comps.
The slump was especially sharp in core products: women's sales fell 4% and leggings revenue dropped 20%, underscoring product missteps that have eroded market share.
Heidi O'Neill, announced as CEO on April 22, does not officially start until Sept. 8, leaving interim co-CEOs Meghan Frank and André Maestrini to manage inventory and operations during the slide.
That weak handoff clouds the near term: third-quarter revenue guidance implies a 10% to 11% year-over-year decline, with North America expected to fall by a mid-teens percentage.