The Globe and Mail reports in its Monday edition that Lululemon is languishing at a seven-year low ahead of earnings this week. The Globe's guest columnist Amber Kanwar writes that to recap the drama: activist investor Elliott Management took a $1-billion stake, long-time chief executive officer Calvin McDonald announced his exit, founder Chip Wilson started a campaign to shake up the board while lambasting current management for failures, then the company announced a former Nike executive would take the CEO job in September. Against this backdrop, Lululemon shares continued to lose ground as sales growth has stalled. Needless to say, a lot of baggage when Lululemon reports Thursday afternoon. "The market is waiting to see if Lululemon can reinvigorate demand with product newness," wrote Raymond James's Rick Patel. The company's recent product launches have stumbled. Lululemon had to temporarily pause on-line orders of their new "Get Low" pants because of customer complaints. Mr. Patel said, "With a new CEO joining in September, Lulemon is in transition mode with a strategy subject to change." Valuation may seem undemanding, Mr. Patel added, trading at just nine times earnings, but it's "too early to call a turnaround."