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Lululemon shares drop after CEO change amplifies ongoing brand reset efforts
Lululemon’s shares dropped nearly 12% after the company named former Nike executive Heidi O’Neill as its new CEO, signaling ongoing efforts to revive its U.S. business amidst weakening sales and increased competition. The leadership change comes as Lululemon’s market value has significantly decreased, and analysts remain cautious about the effectiveness of these changes in addressing deeper operational concerns and a proxy fight led by founder Chip Wilson. The company is hoping O’Neill can strengthen product focus and re-energize its core customer base.