LULU Shares Fall Despite Board Reshuffle As 2026 Outlook Misses Street Expectations

• The announcement comes on the heels of Lululemon founder Chip Wilson starting a proxy fight against Lululemon’s board in late December.
• Lululemon on Tuesday also reported fourth quarter diluted earnings per share of $5.01, above an analyst estimate of $4.78. 
• For FY26, the company expects earnings per share of $12.10-$12.30, below an estimated $12.54.

Shares of Lululemon Athletica Inc (LULU) fell 1% after hours on Tuesday after the company’s fiscal year 2026 outlook disappointed Wall Street despite the company announcing the appointment of former Levi Strauss & Co (LEVI) CEO as a new independent director amidst demands for a leadership change.

The athletic apparel maker said it has appointed Chip Bergh to its Board of Directors, effective immediately, taking the total number of independent directors added to the board over the last five years to five.

Bergh will stand for election at Lululemon's 2026 Annual Meeting of Shareholders in lieu of David Mussafer. Mussafer will not stand for re-election, the company said.  
 

Why The Shift?

The announcement comes on the heels of Lululemon founder Chip Wilson starting a proxy fight against Lululemon’s board in late December by nominating three independent directors- Marc Maurer, Laura Gentile and Eric Hirshberg, to the company’s Board.

“The core issue at lululemon is one the Company has struggled with for years: there is a disconnect between the Company's creative engine and the Board's understanding for how brand power and product excellence fuel cultural strength, margin durability and long-term shareholder value,” Wilson said on Tuesday while adding that his nominees will pose tough questions in the boardroom.

The company’s current Board has no brand and product experience, Wilson alleged. Activist investor Elliott Management is also pushing for leadership changes at the company in addition to a new CEO.

Q4 Earnings

Lululemon on Tuesday also reported fourth quarter diluted earnings per share of $5.01, above an analyst estimate of $4.78.  

For FY26, the company expects earnings per share of $12.10-$12.30, below an estimated $12.54. Revenue, for the fiscal year, is also expected to be below consensus estimate at $11.35 billion-$11.5 billion.

For the present quarter, the company expects earnings per share in the range of $1.63-$1.68, below an analyst estimate of $2.07 and revenue of $2.4 billion-$2.43 billion.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around LULU stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘extremely high’ levels.  

LULU stock has fallen by about 50% over the past 12 months.

Read More: LLY Shares Dive On Analyst Downgrade Citing Obesity Market Overestimation Concerns, But Retail Dismisses ‘Absurd’ Selloff

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