Lululemon Restructures Fabric Team After Quality Issues and 55% Stock Slump

Key Facts

1Lululemon eliminated seven positions and shifted some raw-material development functions to vendor partners in Taipei and Ho Chi Minh City.

2The company's stock has plunged approximately 55% in 2026 amid declining sales and complaints regarding product transparency.

3Management now expects full-year revenue to decline between 5% and 7% following a drop in second-quarter sales.

Lululemon eliminated seven positions and shifted some raw-material development functions to vendor partners in Taipei and Ho Chi Minh City. Bloomberg reported that the restructuring follows customer complaints regarding product transparency in the Get Low collection, which prompted a temporary suspension of online sales. According to company data cited by ZeroHedge, management now expects full-year revenue to decline between 5% and 7% following a drop in second-quarter sales.

The company's stock has plunged approximately 55% in 2026 as the brand faces declining customer traffic and intensified competitive pressures. The restructuring comes amid persistent quality control issues that have impacted financial performance, with comparable sales falling 9%, including a 12% decline in the Americas.