What Happened?
Shares of athletic apparel retailer Lululemon (NASDAQ: LULU) fell 3.3% in the afternoon session after a challenging demand picture and concerns over the company's earnings outlook became more pronounced. The athletic apparel maker's stock had already been in a deep bearish trend, falling more than 50% over the previous year. This decline was driven by quarterly results that revealed slowing growth. The company saw a major slowdown in North America, its largest market. At the same time, higher tariff rates compressed the company's profit margins, and competition rose in the athleisure market. These factors contributed to a difficult picture for the company's shares.
The shares closed the day at $165.46, down 3% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lululemon? Access our full analysis report here.
What Is The Market Telling Us
Lululemon’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3% on the news that the company announced a new partnership with the National Football League (NFL) and sports merchandiser Fanatics to launch a collection of officially licensed apparel. This collaboration marked the athletic apparel retailer's first-ever venture into creating products for the NFL, covering all 32 teams. The collection was set to include a range of apparel and accessories for both men and women. The move represented a notable expansion for the yoga-wear company as it sought new avenues for growth beyond its traditional offerings. By entering the lucrative sports fan merchandise market, Lululemon positioned itself to reach new customer segments in a space long dominated by competitors like Nike and Adidas. Investors reacted positively to the news of the partnership.
Lululemon is down 55.6% since the beginning of the year, and at $165.47 per share, it is trading 60.7% below its 52-week high of $421.16 from January 2025. Investors who bought $1,000 worth of Lululemon’s shares 5 years ago would now be looking at an investment worth $505.82.
The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.
