Lululemon Athletica is about to get a new CEO, but investors are already questioning how quickly she can fix a business whose problems now appear deeper than a temporary slowdown.
Shares of the sportswear maker fell about 20% on Friday after Lululemon cut its full-year forecast for the second time, raising concerns that Heidi O’Neill will face a prolonged turnaround when she takes charge on September 8. The stock was trading around $100, near levels last seen in 2018, and is down sharply this year. Reuters reported that the decline could erase about $2.5 billion from Lululemon’s market value.
