Episode summary
Lululemon’s Disappointing Outlook Adds Urgency to CEO Search | Bloomberg Intelligence
Bloomberg Intelligence
· · 23 min · Hosts: Paul Sweeney, Scarlet Fu · Guests: Poonam Goyal, Mary Ross Gilbert, Diana Gomes, Diana Rosero Pena
Summary
Lululemon’s earnings beat some near-term expectations, but the more important message was that guidance remains weak and the turnaround is still unproven. The analyst said revenue for 4Q rose 1%, better than expected, yet the outlook for 1Q and the full year stayed very light, with product markdowns still weighing on the business. She argued that the biggest fix is newness: women’s assortments in North America need more fresh product, while men’s and international remain stronger. The pending CEO search was framed as the key inflection point for whether the brand can regain double-digit growth.
Macy’s, by contrast, was presented as showing clear operational progress. The analyst said the chain has inflected to positive comp sales, is attracting more middle- and higher-income shoppers, and is benefiting from stronger merchandising and new brands. Bloomingdale’s was described as a continued winner, helped in part by Saks and Neiman Marcus disruption.
Unilever and General Mills were both portrayed as portfolio-and-margin stories. Unilever is leaning harder into beauty and personal care while weighing options for food assets. General Mills is dealing with weak volume, more private-label competition, and margin pressure from pricing and tariffs, even as its dividend remains a key support.
Key takeaways
- Lululemon’s 4Q revenue was up 1%, but the analyst said the 2026 outlook was still “very light” and the turnaround is not yet confirmed.
- The analyst said Lululemon needs a product-led CEO who understands apparel and athleisure, not just beauty or merchandising.
- Macy’s has inflected to positive comps and is seeing stronger traffic from middle- and higher-income consumers, according to the analyst.
- Bloomingdale’s is benefiting from Saks and Neiman Marcus disruption, with comp sales up 10% in 4Q, the analyst said.
- Unilever is prioritizing beauty, personal care and premium innovation while studying how far to separate its food business, the analyst said.
- General Mills is facing weak volume growth, private-label competition and margin pressure as it leans on marketing instead of broad price hikes.
Notable quotes
“The concern was really the guidance. The outlook for the next quarter which is 1 Q and the full year was still very light”
“I think what we need is someone who understands the apparel and the athleisure space”
“Macy's has inflected to positive comp sales. They were looking to achieve sustainable growth. We think they're there”
“they're expecting comp sales though they're guiding to be down a half a percent to up a half a percent but we think they'll easily beat that”
How the episode opens
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Lululemon stocks up 3.2% today. That's the good news. The bad news, it's down 20% year to date. It's down 50% over the trailing 12 months. I understand they don't have a CEO either, so I'm not sure what's going on there. Big fan of Lululemon, don't get me wrong, but I think there's a little bit of a
What was the last Lululemon item you bought? — Not one, but I'm a big admirer. — Okay. — Yep. Pun Goyle, senior US e-commerce and retail intelligence — Joins us from Princeton. Pum, I know Lululemon reported some results here. A what did you see in the results and B what's the latest on their CEO search?
Uh so the latest on their CEO search is that it's still undergoing and we don't know where they are as far as the results are concerned. Um they posted respectable 4Q numbers last night a 1% increase in revenue was better than the 1% roughly decline that we expected. So a little better.
The concern was really the guidance. The outlook for the next quarter which is 1 Q and the full year was still very light. Now, I don't know if it's that they're being conservative because clearly the turnaround hasn't begun to take hold or that things are still soft as they continue to mark down product to get um rid of some of that inventory and bring in new product.
So, I'd say mixed results overall. Still cautious on the turnaround.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- retail earnings
- lululemon outlook
- macy's sales guidance
- unilever restructuring
- general mills pricing
Companies and tickers mentioned
- LULU
- M
- UL
- GIS
- Lululemon Athletica
- Macy's
- Unilever
- General Mills
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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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