Lululemon Shares Sink on CEO Hire

The market reaction to O’Neill’s appointment has been overwhelmingly negative, with retail analysts suggesting that Lululemon needs a 'turnaround CEO' rather than a 'growth CEO.' The company is currently facing intense competition from nimbler brands and a general slowdown in the athleisure sector.

O’Neill’s ties to Nike, which has also been grappling with its own sales slump, have added to investor anxiety.

The stock dip represents the largest single-day market decline for Lululemon in several years.