Lululemon Faces Leadership and Product Crisis as Stock Declines
Lululemon Athletica's stock tumbled 3.24% to $180.35 amid a cascade of operational failures. The departure of CEO Calvin McDonald leaves the company without permanent leadership during a critical period of quality control scandals and product misfires.
The $108 'Get Low' leggings debacle—where the company advised customers to change underwear rather than address the garments' transparency issues—has become emblematic of deeper problems. Retail analysts lambasted the response as unworthy of a premium brand.
Failed ventures including the $500 million Mirror fitness device and a poorly executed Disney collaboration compound the challenges. Shares have plummeted 56% over the past year, though analysts maintain a $211.71 average price target.