New York, January 21, 2026, 08:23 EST — Premarket
- Before the bell, Lululemon shares ticked up following a sharp drop in the previous session.
- The company halted online sales of its new “Get Low” workout line following complaints that the leggings were see-through.
- Governance concerns and a CEO transition are rattling investors.
Lululemon Athletica shares edged up about 0.3% in premarket trading Wednesday, rebounding slightly after a 6.5% drop the day before that pushed the stock to close at $188.76. The selloff came amid backlash over the company’s new “Get Low” workout line. 1
The online pause hits especially hard for Lululemon, given their focus on performance fabric and premium pricing. If customers start doubting the product, returns spike, foot traffic drops, and margins take a hit soon after.
The stock has tumbled close to 50% in the last year, making investors skittish. On top of that, the brand faces fresh backlash over sheerness issues and quality control concerns. 2
Lululemon has halted online sales in North America to assess early customer reactions, though the collection is still available in stores. A spokesperson described the move as a “temporary pause” to gather “initial guest feedback” and offer product education, with plans to resume online sales shortly. Morningstar analyst David Swartz flagged the incident as highlighting “issues with product development.” 3
The product setback coincides with a proxy battle for control of the board. Founder Chip Wilson is campaigning to oust private equity firm Advent from Lululemon’s board, Semafor reported, though Reuters said it couldn’t immediately verify that claim. Wilson owned a 4.27% stake as of December 2025, according to Reuters’ data, and has made clear that any deal would mean two longtime directors, including board chair David Mussafer, must resign. 4
Lululemon is preparing for a leadership change. According to a Dec. 11 filing, CEO Calvin McDonald will step down on Jan. 31. Board chair Marti Morfitt will take on the role of executive chair, while CFO Meghan Frank and chief commercial officer Andre Maestrini will act as interim co-CEOs during the search for a new permanent leader. 5
Last week, the company said it anticipates fourth-quarter fiscal 2025 revenue and earnings per share to land near the top of its earlier forecast ranges, following a strong holiday season. CFO Meghan Frank confirmed the expectation to reach “the higher end” of its previously stated guidance. 6
But the situation is double-edged. If the online pause stretches out or complaints about sheerness mount, Lululemon could face new brand damage just when it can’t afford missteps. On top of that, governance issues might steal focus, even if sales remain steady.
Traders will be watching closely for a couple of key signs: if “Get Low” makes a swift, low-key comeback online, and whether management hints at a wider product overhaul. Fresh filings or comments linked to the proxy battle could swing the stock as much as the leggings themselves.
Investors are now zeroed in on Jan. 31, when the interim co-CEOs step in. That day might reveal new insights into the CEO hunt and the company’s strategy for speeding up product development.
