Is Lululemon (LULU) Stock Worth Buying Before the New CEO Takes Over?
TLDR
- Heidi O’Neill becomes Lululemon CEO on September 8, bringing 27 years of Nike experience to the role.
- North American SKU counts have been cut by roughly 15% to boost full-price selling.
- China Mainland revenue rose 30% to $478.4 million in Fiscal Q1, while Americas revenue fell 3%.
- Director Charles V. Bergh bought 4,275 stock units at $117.05, totaling around $500,000.
- Wall Street holds a “Reduce” consensus with an average price target of $148.38.
Lululemon stock is trading around $120 as the company prepares for one of its biggest leadership transitions in years. Heidi O’Neill officially takes the CEO role on September 8, stepping in as the brand works through a rough patch in North America.
Lululemon Athletica Inc., LULU
O’Neill spent 27 years at Nike, holding senior roles in product and consumer strategy. That background lines up closely with what Lululemon needs right now.
The company has already started making changes ahead of her arrival. North American store SKU counts have been cut by roughly 15%, meaning fewer individual products on the floor and more attention on newer styles. Management has also pulled back on markdowns.
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