Is Lululemon Nearing Its Bottom?
Lululemon has a new CEO, but a true turnaround will still take time.
Overview
Lululemon (NASDAQ: LULU) and its once iconic yoga pants keep getting stuck in uncomfortable positions. The athleisure retailer's recent fiscal second-quarter earnings were disappointing, with revenue down 4% and the anticipated turnaround nowhere to be found. So is Lululemon nearing the bottom now?
Comparable sales fared even worse this quarter, dropping 10% globally. In North America, revenue fell 8% and comparable sales were down 12%. The market reacted brutally, with shares falling more than 17% in after-hours trading. The stock's fall marked a new 52-week low. Lululemon also projects a 10% to 11% decline in revenue for the third fiscal quarter.
Details
Lululemon's stock, as of this writing, has declined more than 75% in the past five years. There's a glimmer of hope for the company, though, as Heidi O'Neill steps in as CEO as of Sept. 8. She's inheriting a slew of tough challenges, but a fresh leadership perspective may be just what the struggling brand needs.
Source
Originally published at www.fool.com.