STOCKS | Lululemon's New CEO Faces a Long List of Challenges

Lululemon's new chief executive, Healy O'Neill, officially took over on Tuesday and inherits a difficult turnaround. According to Sina Finance, the athletic apparel brand reported weak results last week, with North American sales down 12% and full-year guidance cut for the second time in three months. The company said slower performance was driven by a 20% drop in sales of its signature yoga pants. It also cited a marketing misstep in China, where a promotional campaign used Japanese drum imagery, as another blow to sales. The disappointing quarterly report highlighted several long-running problems, including consumers shifting to trendier rivals, a public dispute with founder Chip Wilson, and a weaker consumer backdrop. Emarketer chief analyst Sky Canaves said O'Neill is taking over at a very difficult moment, while GlobalData Managing Director Neil Saunders said investors are waiting for a clear turnaround strategy.