New York —
When incoming Lululemon CEO Heidi O’Neill starts her new job on Tuesday, she will have a lot of heavy lifting to do.
Last week, the struggling athleisure brand reported another dismal earnings report, posting a 12% drop in sales in North America and slashing its full-year outlook for the second time in three months. Shares fell roughly 20% on Friday, with the stock hovering at an eight-year low.
Lululemon pinned the slowdown on a decline in products it’s best known for, like leggings, which saw a 20% plunge in sales. Another setback was an incident in which the company mistakenly used a Japanese drum for a promotion in China, sparking backlash and hurting sales.
The disappointing quarter only further underscored the company’s years-long decline due to a litany of problems: customers defecting to trendier rivals, a public fight with founder Chip Wilson that’s been put on ice and a broader pullback in consumer spending.
