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Lululemon shares plunge 42% amid founder-management battle and weak growth outlook

Market News
19 May 2026
24/7 Wall Street
View Source
Bearish
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Lululemon's stock has fallen 42% this year as founder Chip Wilson and current management clash over control, highlighting deeper issues in the company's business model. Wilson, owning 9%, demands board changes, accusing current directors of misunderstanding the business, while the company resists his efforts. Revenue growth is stagnant, with only a 1% increase last quarter and a weak forecast for the next quarter, as competitors gain market share and fashion trends shift away from Lululemon's products. The ongoing proxy battle and poor financial outlook raise concerns about the company's future viability.

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