Lululemon Falls Sharply as CEO Selection Underwhelms Wall Street

Lululemon Athletica Inc. fell the most in more than seven months after naming a Nike veteran as chief executive officer, underscoring investor skepticism that the yogawear brand can recapture the growth of past years.

The shares dropped as much as 12% on Thursday in in New York trading, the most since September 2025. The stock had fallen more than 21% this year as of Wednesday’s close.

The company on Wednesday announced Heidi O’Neill as its top executive — a surprise pick with no previous experience as a CEO. She previously spent nearly three decades at Nike Inc. and will start ...