Lululemon faces a new potential overhang while its business is already losing ground to Alo and Vuori. Founder Chip Wilson, who owns about 8.6% of the company, is reportedly divorcing with no prenup, per Unusual Whales citing the New York Post. That does not guarantee he sells shares, but it puts a nearly $1 billion stake in play. With the business under pressure, more downside before a turnaround begins would be no surprise. x.com 

Lululemon needs its founder Chip back as CEO, and he is getting board seats rather than the CEO job. New CEO Heidi starts September 8, while founder-CEO performance is what the company needs. Below $100 a share, its enterprise value is about $14B, less than the roughly $19B Nvidia has put into Poolside and Hugging Face. x.com 

Lululemon is cheap at around 11x earnings with gross margins above 50%, while many people, including the founder, are pushing for a turnaround. Sales growth is tiny, but the balance sheet is solid and the company makes an interesting acquisition target. The reported collapse of talks with founder Chip Wilson, per WSJ via @DeItaone, looks good for the stock: Wilson may try to take it private or bring in a strategic buyer. x.com  x.com 

Lululemon's CEO saying the company continues to navigate some challenging dynamics is corporate speak for serious trouble. The stock fell 18% after hours on the results. x.com  x.com 

Lululemon has let ESG and DEI wokeness destroy the company. It is now one of three stocks not to touch with a ten-foot pole. x.com 

Lululemon is an 800lb gorilla worth defending despite bad management and the politics around its skin-tight leggings. x.com 

Lululemon is losing its customer to Alo Yoga, the shiny new brand, while its shareholder base shifts toward value investors. @BillBrewsterTBB notes most women he talks to have gone from fans to lukewarm, while those who like the stock are value-investing men, a mismatch that shows the perils of a shifting shareholder base. x.com 

Lululemon's demand keeps deteriorating, and takeover hopes are a risky reason to hold it. It cut full-year guidance again, with Q2 revenue down 4%, Americas sales down 8% and comparable sales down 9%, sending shares below $100 for the first time since 2019. Michael Burry calls it his largest position and sees a possible private equity takeover, but a Stage 4 decline can last longer than expected, as PayPal holders learned when Stripe chose not to bid. x.com  x.com 

Lululemon's 18% premarket drop looks like an overreaction given its improving margins. x.com 

Lululemon, Nike, Under Armour and On look like cursed value traps because rising competition and unpredictable fashion trends keep eroding their positions. Lululemon has lost its niche dominance as the luxury standard and is now one of a dozen rivals, such as Vuori, Alo and Athleta, chasing the same buyers. Lululemon sits at six-year lows, Nike at 12-year lows, Under Armour at all-time lows and On back at 2022 levels. The products may still be good, but competition is overwhelming. x.com  x.com  … Show more