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The Economic Times

Lululemon cuts full-year sales outlook again as new CEO Heidi O’Neill takes over on September 8

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Lululemon cut its full-year sales outlook for the second time, triggering a sharp equity selloff and reinforcing concerns that weakness is structural rather than cyclical. Core leggings revenue fell ~20% in Q2 as demand shifted toward looser fits, while Alo and Vuori gained share, pressuring pricing power and brand relevance. Incoming CEO Heidi O'Neill inherits a difficult reset as costs and store expansion appear misaligned with slowing sales.
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Lululemon cut its full-year sales forecast for a second time this year, as sales in its core leggings category fell about 20% in the second quarter amid a shift toward looser fits. The shares sank about 20% in a single session to around $100, near levels last seen in 2018, wiping roughly $2.5 billion from its market value, according to Reuters. Incoming CEO Heidi O’Neill is set to start on September 8, with rivals Alo and Vuori continuing to gain ground in athleisure.