What do 13-year-old girls, finance bros, and Team Canada have in common? You can find them all decked out in lululemon… in schoolyards, by water coolers, and at the Olympics.
But in the last year, the seemingly unstoppable Canadian athleisure brand hit a hard patch, from slowing sales to inventory problems to an investigation into greenwashing claims. Just this week, the company said its chief product officer was leaving, sending shares down ~7%.
- With the news comes a broader shift in the company’s leadership that will see Sun Choe’s work transferred to the company’s global creative director, Jonathan Cheung.
Why it matters: Some analysts think lululemon is losing its edge. Last quarter, it reported that growth in North America, its largest market, is stagnating — there are only so many leggings and belt bags that people can continue to buy as they rein in retail spending.
Big picture: Sure, lulu might be one of the worst-performing stocks on the S&P 500 so far this year. But the company has built up a decades-long reputation for making athletic clothing that people love, and it continues to invest in growth — with plans to open up to 40 new stores this year.
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