On Monday, Lululemon cut its revenue and earnings guidance sharply. This sent its shares tumbling more than 15%, to a two-year low.
This is the outcome of a pretty awful 2013 for Lulu, which included a product recall and comments from founder and chairman Chip Wilson that were, shall we say, a bit insensitive. (In December, Mr. Wilson announced that he was stepping down as chairman in June of this year.)
Lulu’s struggles offer us all an opportunity to brush up on some key brand lessons. From where I sit, the four most important lessons are these: