Lululemon Faces Sales Slump Ahead of New CEO's Leadership
By Editor • September 3, 2026 • 1 min read
Lululemon Athletica Inc. is entering a challenging phase as it prepares for the leadership of incoming CEO Heidi O’Neill, whose tenure begins next week. The company reported a notable 4% decrease in second-quarter sales, totaling $2.4 billion, alongside a more significant 12% drop in comparable sales across the Americas and a 3% dip internationally.
Despite benefiting from a $134.5 million influx from tariff refunds, the company's profits took an 11.2% hit, bringing them down to $329.2 million. In response to these setbacks, current management has substantially revised the company’s sales outlook for the year, further lowering expectations for investors.
Challenges Ahead for O’Neill
Meghan Frank, Lululemon’s interim co-CEO and chief financial officer, outlined the hurdles awaiting O’Neill during a recent conference call with analysts. The decline in sales was particularly pronounced in key markets, with a 4% fall in mainland China and an 8% dip in North America. Frank acknowledged the negative press surrounding the company, including a contentious proxy battle with founder Chip Wilson and scrutiny over its use of certain chemicals.
Product Line Performance
Sales of Lululemon's signature leggings have also suffered, dropping approximately 20% in the second quarter. While the brand still leads in the leggings market, Frank noted an inconsistent performance across their product range. However, there is a glimmer of hope in the form of newer
Source: wwd.com
