Lululemon CEO hire ‘incremental positive,’ says Barclays

Barclays views the appointment of Heidi O’Neill as Lululemon’s (LULU) next CEO as an “incremental positive to drive positive change.” However, O’Neill’s impact on the business will be felt in 2027 given her start date in September, the analyst tells investors in a research note. As such, Barclays sees 2026 as a “reset” year as Lululemon deals with issues number of structural headwinds. “These headwinds will take time to fix and prevent us from becoming more constructive on LULU shares in the near-term,” the firm contends. It keeps an Equal Weight rating on Lululemon with a $161 price target The stock in morning trading is down 12% to $144.51.