Lululemon stock closes 19.5% lower at an eight-year low
GlobalData managing director Neil Saunders attributed the weakness to “an incredibly boring assortment, too much non-core product that misses on both fashionability and style, and an absence of good technical innovation,” in an emailed comment reported by Bloomberg.
Jefferies analysts led by Randal Konik wrote that the results “show brand momentum is fading fast and share losses are mounting,” according to the publication.
Former Nike executive Heidi O’Neill takes over as chief executive on September 8. Columbia Threadneedle senior equities analyst Mari Shor told Reuters that lead times in the business mean new initiatives could take several years to resonate.
Founder Chip Wilson is divorcing Shannon “Summer” Wilson, his wife of more than 20 years, Bloomberg reported, with a family proceeding filed in the Supreme Court of British Columbia in April and no prenuptial agreement in place.
He owns about 8.6 percent of Lululemon shares, worth a little less than US$1bn, and Summer Wilson holds close to 1 percent.
