UBS analysts caution that 2026 will be a challenging year for Lululemon in North America. They cite materially weak customer engagement and brand perception metrics in the United States.
A recent UBS Evidence Lab survey supports this outlook. The data shows a growing share of U.S. consumers report a worsened brand impression, and key metrics, including aided brand awareness, have declined.
This pessimistic outlook arrives amid significant internal transition. Lululemon is currently searching for a new CEO to revitalize its struggling U.S. business. The company also faces pressure from activist investor Elliott Investment Management to orchestrate a turnaround.
Analysts suggest any meaningful recovery requires new leadership and a restructuring effort. They estimate implementation of these changes could take at least a year.