Lululemon (LULU) Stock Hits 52-Week Low — Is It Finally Time to Buy?

TLDR

• Lululemon stock hit a 52-week low of $118.22, down over 63% in the past year and more than 40% in 2026 alone.
• Revenue grew just 5% in the most recent fiscal year, a continued slowdown from 10% and 19% in prior years.
• Heidi O’Neill, former Nike executive, takes over as CEO in September 2026.
• Founder Chip Wilson is pushing back on the board, opposing O’Neill’s appointment and lobbying for his own nominees.
• The stock trades at a P/E of around 10x, well below the S&P 500 average of 27x, but analysts are split on whether it’s a bargain or a value trap.

Lululemon’s stock dropped to its lowest level since 2018, closing at $118.22 on Monday. That’s a 63.69% decline over the past year, and more than 40% in 2026 alone.

Lululemon Athletica Inc., LULU

The stock hasn’t traded this cheap in nearly eight years. At around 10 times trailing earnings, it sits far below the S&P 500 average multiple of 27.

The gross profit margin remains healthy at 56.6%, and some analysts point to the stock as undervalued relative to its Fair Value. But the business itself is showing cracks.

Revenue for the fiscal year ended February 1 came in at $11.1 billion, up just 5%. That follows 10% growth the year before, and nearly 19% the year prior. The growth curve is heading in the wrong direction.

New CEO Faces a Tough Road

Heidi O’Neill, a Nike veteran with decades of brand-building experience, was named the incoming CEO. She takes the role officially in September 2026.

Not everyone is on board with that choice. Founder Chip Wilson has publicly opposed O’Neill’s appointment, saying the board lacks the brand and product understanding needed to lead the company forward.

Wilson is currently involved in a proxy campaign. He has agreed in principle to eight settlement terms with the board, which include placing two of his nominees on the board and adding one mutually agreed director by October.

He is also urging other shareholders to back his three independent nominees at the 2026 annual meeting.

Value Play or Value Trap?

At current prices, some investors are circling LULU as a deep value opportunity. Michael Burry, of “The Big Short” fame, has recently increased his position in the company.

But others aren’t convinced. The company’s high-price-point products may struggle to hold their ground in a weaker consumer environment.

A lawsuit filed against Costco Wholesale last year raised questions about how easily Lululemon’s products can be replicated at lower price points. That’s not a small concern for a brand that charges a premium.

Esi Eggleston Bracey, formerly of Unilever and Coty Inc., was recently added to the board, bringing fresh consumer brand experience.

The stock is now at a level where every headline matters. With a leadership transition underway, a founder pushing back on the board, and sales momentum fading, the next few quarters will be telling.

The 52-week range sits between $118.08 and $340.25. As of Monday, LULU was trading near the very bottom of that range.

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