Lululemon hiring a Nike veteran for their next CEO is lazy and backwards. Out of ideas
u/Trenbolone-Papi2 ·
Reddit — r/ValueInvesting
· April 22, 2026 at 22:02
· ⬆ 15 pts
· 💬 7 comments
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Summary
The post criticizes Lululemon's (LULU) decision to hire a former Nike executive as its new CEO, framing it as a desperate move by two struggling companies.
The author's thesis is that LULU is a declining business due to shifting fashion trends away from leggings, and that Nike (NKE) remains overvalued despite its significant price decline.
Quality assessment: Speculation. The post is based on anecdotal observation (fashion trends) and opinion, not on financial data or in-depth business analysis.
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“Struggling, in decline business hires a man from another struggling, declining business as their CEO.”
Funny and ironic.
Imagine Blockbuster in the 2000s hiring Hollywood Video veteran for their CEO to compete against Netflix.
Literally don’t see any young woman wearing leggings anymore. This generation of women just wears loose baggy pants.
Glad I sold this stock at $220 when it got that pop from Elliot Management initiating a stake.
What’s noteworthy about Nike is despite their massive share price collapse from its all time highs, the stock is still not cheap. It’s market cap is still high. It’s dividend is still only 3%. Average dividend yield for a blue chip. P/E still high.
Lululemon is hiring a CEO from Nike, which the author views as another "struggling, declining business." The author also observes a generational shift in fashion away from leggings to baggy pants. This suggests the company is out of ideas and cannot reverse its decline, leading to further poor business performance and stock price depreciation. The stock is a short opportunity as the new CEO is unlikely to fix core problems and the brand is losing relevance. The new CEO could successfully execute a turnaround; the "baggy pants" trend could be temporary or not materially impact sales.
Despite a massive share price collapse from all-time highs, Nike's market cap and P/E ratio are still considered high, with only an average (~3%) dividend yield. The stock is not yet "cheap" by value investing standards, implying further downside or a lack of margin of safety for investors. The stock should be avoided as it does not present a compelling value opportunity despite its decline. Nike's brand power and scale could justify its valuation; the market may re-rate the stock higher.
This Reddit post, published April 22, 2026,
features u/Trenbolone-Papi2
discussing LULU, NKE.
2 trade ideas extracted by AI with direction and confidence scoring.