Is Lululemon stock (Nasdaq:LULU) a turnaround opportunity or a falling knife? Simon Erickson and Heather Horton break down the athleisure brand’s comeback plan, from its recurring see-through leggings problem to a sweeping leadership overhaul under new CEO Heidi O’Neill.We cover founder Chip Wilson’s activist push for a product-first strategy, the new board members and executives joining from ESPN, On Holding, Athleta, and Walmart Canada, and Lululemon’s Q2 fiscal 2026 earnings. Revenue and comparable sales are falling, but gross margins, share buybacks, and a $1.4 billion cash position tell a more nuanced story.With nearly every Wall Street analyst calling it a hold or sell and the stock trading at a fraction of its former valuation, Simon explains why Lululemon earned a spot on 7investing’s October Strong Buy list, and why this high-risk turnaround could have major upside if it works.🔗 Free 7investing trial: https://7investing.com/subscribeCompanies mentioned:Lululemon Athletica (Nasdaq:LULU)Nike (NYSE:NKE)Gap Inc. (NYSE:GAP), parent of Athleta and Old NavyOn Holding (NYSE:ONON)Walmart (Nasdaq:WMT)Costco Wholesale (Nasdaq:COST)Rocket Lab (Nasdaq:RKLB)The Walt Disney Company (NYSE:DIS), parent of ESPNChapters0:00 Lululemon’s turnaround story1:16 Heather’s take on the brand and valuation2:09 Chip Wilson’s activist push3:07 The 2013 see-through pants controversy4:58 The sheer leggings problem returns in 20267:02 Why see-through leggings are inexcusable8:30 Competition and margin wiggle room9:26 Leadership shakeup: Heidi O’Neill takes over11:21 New board members from ESPN and On11:50 New president and COO from Athleta and Walmart14:16 Q2 fiscal 2026 results16:10 Silver linings: margins, buybacks, and cash19:06 Valuation: what Wall Street analysts think24:51 Why Lululemon is a 7investing Strong Buy27:58 Is Chip Wilson a liability?29:33 Women in the C-suite and long-term thinking30:55 Wrap-up and next week: Rocket Lab#7investing #SimonErickson #Lululemon #LULU #StockMarket #Investing #TurnaroundStocks #StocksToBuy