At the root of the recent stock plunge is a growing feeling that Lululemon, a brand that essentially invented the “athleisure” craze, has lost its innovative leadership. Though its top line will likely exceed a record $11 billion for the recently ended fiscal year, thanks to a successful China business, its core North American business, which generates some 75% of revenues, is still in a worrisome slump. It saw comparable sales fall 5% last quarter—and decline has a way of accelerating in the consumer goods world.
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