Lululemon Athletica (LULU +0.37%) was once the envy of all athleisure retailers. The company set the standard for what was considered trendy, particularly among yoga practitioners and fitness buffs. From 2019 through 2023, the company's stock reflected this dominance, even reaching a peak of over $500 per share in late 2023.
Since then, Lululemon has largely fallen out of favor with consumers, and the company is struggling to regain its footing. In January 2026, Lululemon's CEO, Calvin McDonald, left the role. The company has yet to name a permanent successor. The founder and former CEO of Lululemon, Chip Wilson, has been in a proxy battle with the company. Wilson has been vocal regarding his displeasure with the brand's performance and direction.
Lululemon's stock has fallen about 50% over the past year. For investors who held on to their shares, the biggest question is whether the company has hit rock bottom yet and, if so, when the real recovery will begin.
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Lululemon at a crossroads
Lululemon entered 2026 as a consumer discretionary company in the doldrums, searching for a path forward. The company had made a series of product missteps amid declining foot traffic in its North American stores. For the full fiscal year 2025, sales decreased 3%, and revenue in the Americas decreased 1%.
International business is a bright spot in the beleaguered company. Throughout 2025, the company reported double-digit growth in international revenue. Lululemon's international net revenue increased 22% from the year prior, according to its full-year results released on March 17.
Lululemon is also facing headwinds with increased competition and price-conscious consumers who don't feel the need to be loyal to any one particular apparel brand. Looking ahead through 2026, Lululemon anticipates net revenue growth of 2% to 4%.
On the bright side, growth is still positive. On the negative side, low single-digit increases aren't super exciting to shareholders.
NASDAQ: LULU
Key Data Points
Is the turnaround coming?
Until the company finds its next permanent leader, the turnaround cannot truly begin. The bullish case for Lululemon is that a strategic recovery is likely, but it won't materialize quickly. Investors need patience as the athleisure company sorts out its executive leadership. At its current valuation, it seems much of the bad news is already baked into Lululemon's price, however.
Wall Street analysts overwhelmingly rate Lululemon stock as a "hold." I also agree with this sentiment. Until the retailer appoints a permanent CEO with a real vision for product expansion and a keen eye for understanding what consumers want in their athleisure apparel, I would avoid buying the stock, or, if you're already an investor, sit tight for the next few years.
