TLDR LULU stock dropped 3.24% to $180.35 following see-through leggings scandal CEO Calvin McDonald stepping down during quality crisis and brand reputation damageTLDR LULU stock dropped 3.24% to $180.35 following see-through leggings scandal CEO Calvin McDonald stepping down during quality crisis and brand reputation damage

Lululemon (LULU) Stock: Defective Leggings and CEO Exit Send Shares Lower

TLDR

  • LULU stock dropped 3.24% to $180.35 following see-through leggings scandal
  • CEO Calvin McDonald stepping down during quality crisis and brand reputation damage
  • Company told customers to wear different underwear to fix $108 defective tights
  • Failed $500 million Mirror acquisition and Disney collaboration hurt brand credibility
  • Shares down 56% over 12 months with 20 Hold ratings versus one Buy rating

Lululemon is in crisis mode. The yoga pants pioneer that built a cult following on quality is now defending defective products and searching for new leadership.

Shares fell to $180.35 yesterday, down 3.24%. The catalyst? A disastrous product launch that’s become a case study in what happens when premium brands cut corners.


LULU Stock Card
Lululemon Athletica Inc., LULU

The $108 “Get Low” leggings became see-through when customers moved or bent. Instead of recalling the product, Lululemon suggested women wear different underwear. Retail analyst Neil Saunders didn’t mince words, calling the response “honestly, that’s a joke.”

His point hits hard. Premium brands charging premium prices shouldn’t ask customers to work around defective products.

Fast Fashion Approach Backfires

CEO Calvin McDonald pushed to speed up product development. The strategy aimed to get new items into stores faster. But rushing appears to have sacrificed the quality control that made Lululemon special.

Chief Brand and Product Activation Officer Nikki Neuburger faced hundreds of employees last week. The global meeting was supposed to showcase new designs. Instead, she explained why the latest tights were exposing customers.

Social worker Amore Prince tested the leggings in-store. Even after staff suggested different sizes, she concluded the product “just doesn’t work.”

McDonald is now departing. Elliott Investment Management wants retail veteran Jane Nielsen to take over. Founder Chip Wilson has nominated three board directors and publicly criticized the company’s direction.

Brand Confusion Grows

The company’s attempts at expansion have misfired repeatedly. The $500 million Mirror fitness device purchase ended in discontinuation three years later. A personal care products line went nowhere.

Recent collaborations flopped too. A Disney partnership got roasted on social media as “random” and “basic AF.” Guggenheim Securities analyst Simeon Siegel said early adopters feel “disenfranchised.”

The brand that created athleisure now chases fast-fashion trends. Retail analysts say Lululemon has gone from industry leader to follower.

Stock Performance and Outlook

LULU shares have crashed 56% over the past year. The stock hit new lows this week as the leggings crisis intensified.

Historical data shows LULU has recovered from previous 30% drops with median 12-month returns of 26%. But those rebounds came when the brand’s reputation was intact.

The company’s revenue growth remains positive at 8.8% over the last twelve months. Operating cash flow margin stands at 16.8%. These metrics show the business still functions. However, brand damage takes time to repair.

Long-time customers who built Lululemon into a powerhouse are questioning their loyalty. The quality issues combined with leadership uncertainty create a challenging environment for any recovery.

The next CEO inherits a company that needs to remember what made it special in the first place.

The post Lululemon (LULU) Stock: Defective Leggings and CEO Exit Send Shares Lower appeared first on Blockonomi.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Your Trusted Plumber in Sunnyvale, CA: Professional Plumbing You Can Rely On

Your Trusted Plumber in Sunnyvale, CA: Professional Plumbing You Can Rely On

Finding a dependable plumber in Sunnyvale is essential for protecting your home or business from costly water damage, system failures, and unexpected emergencies
Share
Techbullion2026/01/31 00:04
Fed Decides On Interest Rates Today—Here’s What To Watch For

Fed Decides On Interest Rates Today—Here’s What To Watch For

The post Fed Decides On Interest Rates Today—Here’s What To Watch For appeared on BitcoinEthereumNews.com. Topline The Federal Reserve on Wednesday will conclude a two-day policymaking meeting and release a decision on whether to lower interest rates—following months of pressure and criticism from President Donald Trump—and potentially signal whether additional cuts are on the way. President Donald Trump has urged the central bank to “CUT INTEREST RATES, NOW, AND BIGGER” than they might plan to. Getty Images Key Facts The central bank is poised to cut interest rates by at least a quarter-point, down from the 4.25% to 4.5% range where they have been held since December to between 4% and 4.25%, as Wall Street has placed 100% odds of a rate cut, according to CME’s FedWatch, with higher odds (94%) on a quarter-point cut than a half-point (6%) reduction. Fed governors Christopher Waller and Michelle Bowman, both Trump appointees, voted in July for a quarter-point reduction to rates, and they may dissent again in favor of a large cut alongside Stephen Miran, Trump’s Council of Economic Advisers’ chair, who was sworn in at the meeting’s start on Tuesday. It’s unclear whether other policymakers, including Kansas City Fed President Jeffrey Schmid and St. Louis Fed President Alberto Musalem, will favor larger cuts or opt for no reduction. Fed Chair Jerome Powell said in his Jackson Hole, Wyoming, address last month the central bank would likely consider a looser monetary policy, noting the “shifting balance of risks” on the U.S. economy “may warrant adjusting our policy stance.” David Mericle, an economist for Goldman Sachs, wrote in a note the “key question” for the Fed’s meeting is whether policymakers signal “this is likely the first in a series of consecutive cuts” as the central bank is anticipated to “acknowledge the softening in the labor market,” though they may not “nod to an October cut.” Mericle said he…
Share
BitcoinEthereumNews2025/09/18 00:23
Shiba Inu Burn Rate Rockets 500% in Rare Upside for Price

Shiba Inu Burn Rate Rockets 500% in Rare Upside for Price

The post Shiba Inu Burn Rate Rockets 500% in Rare Upside for Price appeared on BitcoinEthereumNews.com. Shiba Inu (SHIB) has recorded a massive surge in burn rate
Share
BitcoinEthereumNews2026/01/31 00:12