Lululemon Drops to Eight-Year Low With New CEO Inheriting a Mess | Bloomberg Businessweek

Bloomberg Audio Studios podcasts, radio, news. — You're listening to Bloomberg Business Week with Carol Masser and Tim Stenc on Bloomberg Radio. — I will give the Gen Z's credit for freeing us from skinny jeans. Like I love that pants are why they we appreciate you for that. We do. But you know who might not appreciate it so much is some of these athleisure brands who've made their mark on leggings, especially Lululemon, who was like the original fancy high-cost legging. They've really been struggling lately.

They have. And you look at their shares, they're down 17%. So basically, they lowered their fullear outlook. Second straight quarter. It has a new CEO starting. — We did this last time I was on this show actually. Yeah, the new CEO is starting in. What we want to do bring in Punam Goyle. She's going to tell us more about it. She's Bloomberg Intelligence senior analyst for e-commerce and retail joining us from uh from New Jersey. Punim, thank you. Uh what went wrong? Are do people just not want the leggings anymore? Take us into it.

Well, there's a lot that's gone wrong here. First, it's execution. Second, it's product.

And third, the styles are changing as you just alluded to. So on execution, they don't have the right management team in place to lead a Lululemon to growth as it once was years ago. the new management team that's coming in with Heidi O'Neal starting next week.

Uh we're not sure how it's going to go. You know, if the issue here is productled and product doesn't turn overnight. So it has at least in my view a 9 to 12 month window before we see signs of any progress.

But that's not all that's happening here.