Lululemon Athletica (NASDAQ: LULU) stock is on track for its worst weekly performance since June, falling across four consecutive sessions and shedding nearly 7% through Thursday.
The latest pressure follows the departure of Chief AI and Technology Officer Ranju Das, who has exited the company after less than a year in the role.
Das joined Lululemon in September and was the company’s first executive to carry the AI and technology title, with responsibilities centered on developing AI initiatives to improve efficiency.
His exit was confirmed through a Securities and Exchange Commission filing, arriving at a particularly difficult moment for the athletic-apparel retailer.
The departure adds to a growing list of senior-level changes as Lululemon prepares to welcome incoming CEO Heidi O’Neill, who is scheduled to take over on September 8.
O’Neill, a former executive at Nike Inc., will inherit a company contending with slowing momentum, intensifying competition and a string of recent operational setbacks.
Strategy chief Rachel Acheson also recently left the company, while product issues including see-through tights and rising competition from brands such as Alo and Vuori have added further strain.
Although Lululemon’s first-quarter results beat analyst expectations, weakening demand forced the company to cut its 2026 sales outlook to roughly flat or a 1% decline.
International markets offered some relief, with China posting 30% growth, but tariffs and higher store costs continued to squeeze margins and weigh on overall profitability.
Lululemon is expected to report second-quarter results on August 27, with analysts forecasting $2.46 billion in revenue and earnings per share of $1.80.
Despite the turbulence, retail sentiment on Stocktwits remained in bullish territory, with one user writing, “$LULU Michael Burry, you said this is the most hated stock since $GME 100% agree, never seen a stock that’s such a turd, one day this turd will be worth gold, hodling like I hodled $AMC and $WEN.”
Famed “Big Short” investor Michael Burry has stated he is holding his Lululemon stake and may add to it, with the position representing 13% of his portfolio and making it his largest holding.
O’Neill faces the immediate task of rebuilding sales, restoring confidence in Lululemon’s leadership and mounting a credible response to fast-growing rivals in the premium athleisure segment.
LULU stock has declined approximately 42% year-to-date, underscoring the scale of the challenge awaiting the incoming chief executive.
