Lululemon Hits 8-Year Low as Gary Black Flags 4-Month CEO Gap
LULU is trading near its 52-week low of $97.99 (2.7% above the low) on elevated volume (7.3× avg).
Summary
Lululemon shares are down 18.2% to $99.67, hitting an 8-year low, after Q2 revenue missed estimates and guidance was cut for the second time. The stock's decline extends the premarket drop reported earlier today, now reflecting a full trading session's reaction. Gary Black adds a new angle: the 4-month gap between announcing Heidi O'Neill as CEO (April 22) and her start date (Sept 8) left the company in a 'lame duck' period, delaying major decisions. He also reiterates his prior warnings on merchandising and product strategy, expecting two more quarters of mediocre results as competitors Vuori, Alo, and Slims gain share. The Q3 EPS guidance of $0.93-$0.98 is far below the $2.40 consensus, signaling continued deterioration. With the new CEO starting Monday, traders will watch for any immediate strategic shifts or further guidance adjustments.
At the time of this announcement, LULU was trading at $100.59 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $11.9B. The 52-week trading range was $97.99 to $225.98. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.