Lululemon Stumbles into Earnings Season with Negative Growth Trend

Lululemon Athletica (LULU) is struggling heading into its upcoming earnings season, with five consecutive quarters of negative earnings growth and a widening gap between revenue and net income.

The company's sales growth has been decelerating for four years, and it expects a decline of 2-3% in revenue and a 42-43% plunge in net income for the fiscal second quarter.

However, Lululemon is not alone in its struggles, as Dick's Sporting Goods plummeted 31% after offering a weak near-term outlook that weighed heavily on athletic footwear brands and leisure apparel companies.

A new CEO, Heidi O'Neill, who was previously a Nike executive, will take over Lululemon on September 8, just days after the financial update. This change could potentially reset market sentiment and bring new life to the brand.