TLDR
- LULU hit a 52-week low of $136.98, down nearly 49% over the past year
- Founder Chip Wilson disclosed he has been advising rival brands Alo and Vuori
- Wilson is pushing for board changes while criticizing current management
- New CEO Heidi O’Neill, a Nike veteran, was named despite no prior CEO experience
- InvestingPro data suggests the stock may be undervalued at its current P/E of 10.4
Lululemon is having a rough 2026. The stock hit a 52-week low of $136.98 on April 30, continuing a slide that has now wiped out nearly 49% of its value over the past year.
Lululemon Athletica Inc., LULU
The stock currently trades at a P/E ratio of just 10.4, well below where athletic apparel names typically sit.
The latest pressure came from a proxy filing that revealed founder Chip Wilson — still one of the company’s largest holders — has been advising rival athleisure brands Alo and Vuori.
According to the filing, Wilson told Lululemon on Feb. 24 that competitors had sought his advice, adopted his playbook, and that Lululemon had not. He reiterated that support roughly two months later.
Wilson’s spokesperson said he is neither a paid advisor nor an investor in either brand, calling his role informal guidance. Still, the disclosure adds a new layer of tension to an already complicated governance situation.
Wilson has spent recent months publicly criticizing the current board and has put forward his own proposed slate of directors. He also launched a proxy battle earlier this year, urging shareholders to back his three independent board nominees.
Leadership Shake-Up Adds to Uncertainty
The company recently named Heidi O’Neill as its next CEO. O’Neill comes from Nike but has no prior CEO experience — a choice that surprised the market.
The stock logged its largest single-day drop in seven months the day after that announcement.
Wilson has been vocal in his criticism of the current board’s understanding of the brand, calling the leadership transition into question.
Separately, Lululemon also added Esi Eggleston Bracey to its Board of Directors. Bracey previously held senior roles at Unilever.
Analysts Stay Cautious
Jefferies lowered its price target on LULU, pointing to product design and merchandising concerns that it said may not align with the brand’s core identity.
Stifel held its rating at Hold with a $176 price target, noting the leadership transition and governance scrutiny the company is navigating.
LULU was down 1.7% midday Tuesday, bringing its 2026 decline to roughly 30%.
InvestingPro data flags the stock as potentially undervalued at current levels, placing it on its most undervalued stocks list.
Management has also been actively buying back stock, according to InvestingPro data — one of several factors analysts are watching closely.
The company continues to face pressure from newer entrants in the athleisure space, with Alo and Vuori among those gaining traction.
Past product missteps, including the widely-covered see-through leggings issue, have contributed to customer backlash that has yet to fully subside.
As of April 30, LULU was trading at $136.98, its lowest point in 52 weeks.
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