Episode summary
Lululemon Shares Sink to eight Year Low on Disappointing Outlook | Bloomberg Intelligence
Bloomberg Intelligence
· · 24 min · Hosts: Paul Sweeney, Scarlet Fu, Kristine Aquino · Guests: Poonam Goyal, Matthew Bloxham, Bailey Lipschultz, Jessica Nix
Summary
Lululemon’s selloff centered on a product problem, not just competition. A guest said North America, especially the women’s business, lacks a strong lineup and that the company’s long pipeline for new product has slowed execution. She argued that Heidi, who joins in September, brings a product-led background that could help, but any real turnaround is unlikely before mid-2027. China remains a better spot for the brand, though it is still a smaller base and sensitive to product-quality headlines.
The tech discussion focused on Broadcom and the SpaceX IPO. Matthew Bloxham said Broadcom’s AI pivot looks early in the infrastructure cycle, pointing to AI sales up 143% and a forward guide for more than 200% growth. He also said some investors may be selling liquid tech holdings to make room for SpaceX. Bailey Lipschultz said SpaceX has already oversubscribed its $75 billion deal, with investors split between huge enthusiasm for Elon Musk’s ambitions and skepticism about the scale of the $400 billion-plus revenue story.
Jessica Nix said the Ebola outbreak in Congo is spreading in part because aid cuts have hollowed out disease defenses. She said the U.S. withdrawal from the World Health Organization and cuts to global health funding have weakened surveillance, tracing, and response capacity, while conflict and burial practices make containment harder.
Key takeaways
- A guest said Lululemon’s main problem is product execution in North America, not just copycat competition.
- A guest expects Heidi’s product background could help Lululemon, but not until mid-2027 at the earliest.
- Matthew Bloxham said Broadcom’s AI revenue jumped 143% and implied the AI infrastructure buildout is still early.
- Bailey Lipschultz said SpaceX’s $75 billion IPO is already oversubscribed, showing demand remains intense despite valuation debate.
- Jessica Nix said aid cuts and the U.S. exit from the WHO have weakened outbreak defenses just as Ebola spreads in Congo.
Notable quotes
“I think the one thing that she does come with is a productled background”
“in the quarter they reported their AI sales were up 143%”
“they have officially over called the book overs subscribed. So, they've officially had more than $75 billion of orders placed”
“the US has largely left a lot of our global health partners”
How the episode opens
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You mentioned Lululemon and — I'm a big fan. — Are you? — Yes. — Have you What What have you bought from Lululemon? No, it's not that I wear them. I appreciate them on other people. — Oh, I see. Okay. So, you happen a buyer probably as gifts.
Uh, yeah. But when I when I talk to buyers or perspective buyers like you or Lisa Mateo or Alexis Kristoffers, — The theme is really good products, but boy, they're expensive.
Yeah, they were kind of the first mover on really good products, but then a lot of copycats came around. And guess what? They've all figured out how to do it pretty well, too, for a lower price.
Ponam Goyal is our senior US e-commerce and retail analyst here at Bloomberg Intelligence. And she joins us now with more on Lululemon. And this has been kind of the challenge for Lululemon for a while now.
This is not a new problem that um there's so much competition out there and that the quality that Lululemon is known for, you're now seeing it at other companies. What has been the response? Because I feel like they haven't figured that out yet.
No, they haven't. You know, the problem continues to linger. But the problem is more than just competition. Competition is one thing. Lululemon's had competition for years. The issue is really the product at its core. And the product in North America, especially across the women's business, they don't have a good lineup of product.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- lululemon outlook
- north america retail performance
- ai vs tech dealmaking
- spacex ipo demand
- ebola aid cuts
Companies and tickers mentioned
- LULU
- AVGO
- Lululemon Athletica
- Broadcom Inc.
- SpaceX
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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