Lululemon named former Nike executive Heidi O’Neill as CEO effective September 8, prompting a 12.9% share drop to $141.66 as investors reacted to transition uncertainty. The company’s market value has contracted to roughly $20 billion from a 2023 peak of $67 billion amid slowing North American growth and intensifying competition.

In the first quarter, Lululemon delivered EPS of $5.01 versus a $4.79 estimate and revenue of $3.64 billion versus $3.59 billion, outperforming Street forecasts. However, fiscal 2026 EPS guidance of $12.10–12.30 fell short of the $12.67 consensus, signaling potential near-term earnings pressure.

Founder Chip Wilson continues his proxy fight to replace three board members, citing a lack of product expertise and missteps in CEO succession. The addition of former Levi Strauss CEO Chip Bergh, new product launches under a brand reset, and store-footprint reconfigurations highlight efforts to stabilize Lululemon’s core business amid lingering structural challenges.