Lululemon’s CEO search is complicated with no clear successor. Activist investor Elliot Investment Management is pushing for a specific pick, and founder Chip Wilson seeks to replace board members. The new CEO will need to revive U.S. sales, which fell 5% in Q3.

Lululemon faces challenges in the U.S. as competition intensifies. With stagnant core products, the company must adapt, focusing on product development and refreshing the portfolio. Despite declining profits, the strong brand could attract customers if the product mix is improved.

Investors may see a stock recovery in 2026, but a full comeback may not happen until 2027. With Lululemon trading at around 16 times full-year earnings guidance, investors have a good deal to wait for the iconic brand to regain momentum.

Before investing in Lululemon, note that it wasn’t among the 10 best stocks identified by The Motley Fool Stock Advisor team. The recommended stocks have the potential to generate significant returns in the future, similar to past successes like Netflix and Nvidia.

Read more at Yahoo Finance: Where Will Lululemon Stock Be When the Dust Settles?