Lululemon faced many questions from Wall Street analysts about if it had correctly diagnosed the challenges it faces.
What happened
Former Nike executive Heidi O’Neill will have her work cut out for her as she prepares to take over as CEO of Lululemon starting Sept. 8.
Why it matters
Lululemon reported second-quarter earnings on Thursday that came in below expectations, and executives faced plenty of questions from Wall Street analysts about whether the activewear brand had correctly diagnosed the challenges it faces.
Net revenue was down 4% year over year, while comparable sales were down 9% compared to the same period last year. Sales were down in all major regions, but the sales decline in the Americas was particularly stark, with comparable sales down 12%.
As interim co-CEOs Meghan Frank and André Maestrini described it on the call: In Q1, Lululemon saw some signs that its turnaround is working. Net revenue was $2.47 billion, up 4% year over year, not far off from the 5% revenue increase Lululemon saw in 2025.
This news brief is based on reporting published by Modern Retail on 2026-09-03. The original report is linked below.
Modern Retail
https://www.modernretail.co/operations/lululemons-identity-crisis-continues-with-comp-sales-down-9-as-it-prepares-to-welcome-new-ceo/This independent news brief is based on the public source identified above. It is an original summary or translation, not a reproduction of the source article. Rights in source text, research, trademarks and images remain with their respective owners; images are used under the licence or permission identified in the credit. Rights holders may contact rights@goodproductasia.com with evidence of ownership. Verified concerns will be corrected, replaced or removed promptly. This report is not investment, legal, medical or purchasing advice.
