Literally Costco right now…

(Source: Tenor) 

Calvin McDonald, CEO of every Asian’s worst pronunciation nightmare (read: Lululemon), is officially getting booted. The man announced he’s peacing out January 31st, and LULU shareholders responded like they’d been released from a three-year hostage situation… shares ripped nearly 11% in the premarket this morning.

(Source: CNBC) 

Of course, this was a long time coming. When your founder buys a full-page Wall Street Journal ad calling the company a “nosedive,” that’s usually the warm-up act before someone’s badge stops scanning. Whereas now, Lululemon’s board is starting its process with “working with a global executive search firm,” which means they’re presumably scrolling LinkedIn and praying the next CEO doesn’t think joggers are a personality trait. In the meantime, the CFO and Chief Commercial Officer will serve as co-CEOs… which is about as desirable as sharing a Facebook account with your wife. 

That said though, Lulu did actually beat earnings yesterday… only to immediately tell Wall Street not to get too horned up over the matter. Why? Because according to management, Q4 is going to be like sipping a fat cup of concrete for shareholders. Revenue was up, EPS was up, but guidance was the biggest loser here. Especially as the U.S. business continues to get knee-capped, while the international business (up 33%) continues to carry the dead weight.

(Source: Imgflip) 

All of this while Vuori and Alo are out popping bottles with every woman on Instagram and every dude who discovered Pilates during a divorce. So yeah… it’s understandable why Chip is out. Although, he does get to stay on as a senior advisor through March before someone new will step in, say the word “transformation” twelve times, and the cycle will continue.

As for the business as a whole, the good news is that Lulu’s problems are solvable. They just require a leader who knows the difference between expansion and sprawl, and who understands that Americans are not paying kidney prices for leggings during somewhat of a recession. But for now, shareholders get exactly what they wanted: A scalp and a green candle. Which means, keep your eyes on this story… and this stock as we head towards the opening bell. Place your bets accordingly, friends. Until next time… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.