Ben Pouladian
Founder of BEP Research, AI Compute Economics
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.comÂ
Lululemon remains one to avoid after another dismal quarter, with poor merchandising, product strategy and leadership. The shares fell 19% after hours on the results. The leadership handover was too slow: Heidi O'Neil, formerly Nike's President of Consumer and Product, was named CEO on April 22, 2026 but only takes over on September 8, a four-month gap a company should not allow. x.comÂ
Lululemon is a dumpster fire now that founder and largest investor Chip Wilson is helping create new competition, starting an athletic-focused business, per Bloomberg. x.com x.comÂ
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.comÂ
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.comÂ
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.comÂ
Lululemon is an 800lb gorilla worth defending despite bad management and the politics around its skin-tight leggings. x.comÂ
Lululemon's new CEO is unlikely to turn it around. The pick comes from a company that has lost its way over the past few years, which gives shareholders little reason to believe in a turnaround and explains the stock's drop on the news. x.comÂ
Lululemon is a classic value trap: EPS guidance fell by a third, so a lower share price is no cheaper, and with EPS likely flat or down for 2-3 years it may need to test the low $80s. Dozens of influencer-led apparel brands selling through Shopify, plus Alo, Vuori and GymShark, offer better products at lower prices without its costly store base. Its mediocre products at premium prices cannot win that fight, and a quick turnaround is unlikely. x.com x.com x.com x.com x.comÂ
Lululemon's 18% premarket drop looks like an overreaction given its improving margins. x.comÂ
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.comÂ
