NEW YORK, May 15, 2026, 17:02 (ET)
- Lululemon’s next CEO Heidi O’Neill told staffers that she and the company are underestimated, Bloomberg said. O’Neill is set to take over as CEO on Sept. 8.
- LULU dropped 1.6% to $119.14 in late trading Friday. The company is now valued around $14.1 billion.
- Founder Chip Wilson is still pressing for three board seats, raising governance concerns for investors right before O’Neill comes in.
Lululemon Athletica shares fell Friday, down 1.6% at $119.14 late in New York trade. The stock touched $118.90 in earlier action. Heidi O’Neill, the incoming CEO, sent her first message to staff, bringing the company’s leadership changes back into focus.
Lululemon’s leadership shuffle isn’t the only issue for the stock. O’Neill won’t take over until Sept. 8, leaving the company facing falling Americas sales, lackluster 2026 guidance, and a proxy fight for board seats led by founder Chip Wilson.
Lululemon faces a long stretch before its new chief starts to shape the board. O’Neill’s name isn’t expected on the ballot at the June annual meeting, Reuters said. Wilson is pushing investors to support three director nominees he’s backing.
O’Neill spoke to employees at the Vancouver headquarters for the first time, saying she plans to refocus the brand, Bloomberg reported Wednesday. “Some people have been underestimating me,” she told staff. “We’ll let the work answer,” she said. Bloomberg
Lululemon named O’Neill CEO on April 22, saying the former Nike exec would join its board and move to Vancouver. The company said O’Neill spent more than 25 years at Nike and worked across product, design, brand strategy, marketing, digital, and global operations.
Lululemon board executive chair Marti Morfitt called O’Neill a “change and growth agent.” In the company’s statement, O’Neill said her job is to deliver “product breakthroughs” and boost the brand’s cultural profile. Lululemon
Lululemon shares sank about 12% after the new CEO announcement, wiping out almost $2 billion in market value, Reuters reported. Wall Street looked unconvinced that a Nike veteran could fix things. BTIG’s Janine Stichter flagged that O’Neill’s long Nike run lined up with challenges a lot like what Lululemon faces. BNP Paribas analyst Laurent Vasilescu said the company may be in the market for a “turnaround CEO” rather than a leader just chasing growth. Reuters
Analysts at Telsey Advisory Group had a different take, saying O’Neill’s experience with products and large companies could suit what Lululemon needs as it manages innovation, global growth, and execution.
Lululemon’s growth gap is hard to miss. Fourth-quarter revenue rose 1% to $3.6 billion, with Americas sales slipping 4% while international jumped 17%. Revenue for all of fiscal 2025 was up 5% to $11.1 billion—Americas dropped 1%, but international climbed 22%.
Lululemon is guiding for 2026 revenue of $11.35 billion to $11.50 billion and says diluted EPS should come in between $12.10 and $12.30. Interim co-CEO and CFO Meghan Frank said the company is focusing on boosting “full-price sales” in North America—selling inventory without heavy discounts, a key move for a high-end label. Lululemon
Wilson is still pushing. In a May 6 SEC filing, he urged shareholders to vote for Marc Maurer, Laura Gentile and Eric Hirshberg on the GOLD universal proxy card, saying Lululemon had “lost its cool.” Lululemon earlier said it had “engaged with Wilson in good faith” and was open to more talks with him and other investors. SEC
Lululemon used to set the tone for athleisure but faces more heat now. Reuters says rivals like Alo Yoga and Vuori are picking up speed in the U.S. Nike, where O’Neill worked before, is dealing with its own problems—mistakes in execution and losing market share.
But the risks are still there. If new items don’t land with U.S. shoppers, Lululemon could see more markdowns. Tariffs or supply chain problems might squeeze gross margin even more. Management pointed to competition, shifting tastes, tariffs, and changing sentiment as things that could move results off guidance.
Lululemon picked up support overseas, giving the company a buffer as O’Neill gets ready to start. Shareholders vote before the next step. For now, attention is less on clothes and more on who takes charge in the coming stretch.
