economy
January 22, 2026
A lot of bad news is priced into Lululemon. Trading the athleisure giant using options
Founder Chip Wilson's activism may be helpful — and he has plenty of motivation to see things turn around.
TL;DR
- Lululemon's stock has fallen over 60% from its all-time highs in late 2023.
- A quality issue, similar to the 2013 'Sheer Pants' debacle, has resurfaced with the 'Get Low' line.
- Founder Chip Wilson is actively criticizing the company and seeking to reshape its board.
- Q4 fiscal 2025 consensus estimates project year-over-year declines in net revenue and adjusted EPS.
- Expectations for the fiscal year ahead include modest revenue growth and free cash flow expansion.
- Alternative data shows a decline in Lululemon's store visits and sales.
- Activist investor Elliott Management has reportedly taken a significant stake and proposed changes.
- The stock is trading at levels last seen in mid-2019, with significantly lower revenues then.
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