Lululemon's Corporate Struggles Continue, but Is a Turnaround on the Horizon?

By Catie Hogan – Mar 23, 2026 at 1:30PM ESTKey PointsLululemon has not appointed a permanent replacement CEO since the departure of Calvin McDonald in January.International sales are a bright spot and opportunity for Lululemon even as its North American footprint struggles.Lululemon Athletica (LULU +1.76%) was once the envy of all athleisure retailers. The company set the standard for what was considered trendy, particularly among yoga practitioners and fitness buffs. From 2019 through 2023, the company's stock reflected this dominance, even reaching a peak of over $500 per share in late 2023. Since then, Lululemon has largely fallen out of favor with consumers, and the company is struggling to regain its footing. In January 2026, Lululemon's CEO, Calvin McDonald, left the role. The company has yet to name a permanent successor. The founder and former CEO of Lululemon, Chip Wilson, has been in a proxy battle with the company. Wilson has been vocal regarding his displeasure with the brand's performance and direction. Lululemon's stock has fallen about 50% over the past year. For investors who held on to their shares, the biggest question is whether the company has hit rock bottom yet and, if so, when the real recovery will begin. Image source: Getty Images. Lululemon at a crossroads Lululemon entered 2026 as a consumer discretionary company in the doldrums, searching for a path forward. The company had made a series of product missteps amid declining foot traffic in its North American stores. For the full fiscal year 2025, sales decreased 3%, and revenue in the Americas decreased 1%. International business is a bright spot in the beleaguered company. Throughout 2025, the company reported double-digit growth in international revenue. Lululemon's international net revenue increased 22% from the year prior, according to its full-year results released on March 17. Lululemon is also facing headwinds with increased competition and price-conscious consumers who don't feel the need to be loyal to any one particular apparel brand. Looking ahead through 2026, Lululemon anticipates net revenue growth of 2% to 4%. On the bright side, growth is still positive. On the negative side, low single-digit increases aren't super exciting to shareholders. ExpandNASDAQ: LULULululemon Athletica Inc.Today's Change(1.76%) $2.87Current Price$165.69Key Data PointsMarket Cap$19BDay's Range$162.81 - $167.4352wk Range$156.64 - $348.50Volume103KAvg Vol2.8MGross Margin56.54% Is the turnaround coming? Until the company finds its next permanent leader, the turnaround cannot truly begin. The bullish case for Lululemon is that a strategic recovery is likely, but it won't materialize quickly. Investors need patience as the athleisure company sorts out its executive leadership. At its current valuation, it seems much of the bad news is already baked into Lululemon's price, however. Wall Street analysts overwhelmingly rate Lululemon stock as a "hold." I also agree with this sentiment. Until the retailer appoints a permanent CEO with a real vision for product expansion and a keen eye for understanding what consumers want in their athleisure apparel, I would avoid buying the stock, or, if you're already an investor, sit tight for the next few years. Read NextMar 22, 2026 •By Adam Levy1 Incredible Value Stock Down 68% to Buy Now Before It ReboundsMar 21, 2026 •By Geoffrey SeilerCan Lululemon Stock Recover?Mar 19, 2026 •By Parkev Tatevosian, CFAShould Investors Buy Lululemon Stock?Mar 19, 2026 •By Jeremy BowmanDown 68%, This Growth Stock Looks Oversold. Is It a Buy?Mar 4, 2026 •By Reuben Gregg BrewerLululemon's Founder Dennis Wilson Is Making His Frustration With the Company's Board Clear. 3 Key Takeaways for Investors.Feb 18, 2026 •By Micah Zimmerman3 Dirt-Cheap Stocks to Buy With $1,000 Right NowAbout the AuthorCatie is a contributing Motley Fool stock market analyst covering technology, consumer goods, transportation, industrials, materials, and energy. She's the founder of the family finances newsletter, Cents of Humor. Catie was formerly the Head of Advice & Coaching at Parthean and an advisor at Element Financial Group. She's the writer and a producer of the hit off-Broadway show, Vape!

The Grease Parody. Catie has a degree in journalism from Emerson College.TMFCatieHoganStocks MentionedLululemon Athletica Inc.NASDAQ: LULU$165.84(+1.85%)+$3.02*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.