Lululemon Athletica Stock Tumbles Amid Earnings Cut

Lululemon Athletica ( (LULU) ) has fallen by -17.86%. Read on to learn why.

Lululemon Athletica’s stock has seen a significant decline of 17.86% over the past week, driven by a series of analyst downgrades and a reduction in the company’s full-year earnings guidance. Despite maintaining a Buy rating from some analysts, the company’s decision to lower its earnings outlook amid tariff pressures and economic slowdown fears has spooked investors. The athletic apparel retailer’s stock was down 19% in pre-market trading on Friday, reflecting market concerns over its future performance.

The company’s recent Q1 FY25 results, while slightly exceeding Wall Street’s expectations, were not enough to prevent a wave of price target reductions from top analysts. Concerns were raised about Lululemon’s ability to maintain growth, particularly in China and other international markets, where sales have been weaker than anticipated. Analysts have also pointed out the potential margin pressures due to rising inventory levels and the impact of tariffs, which have led to a more cautious outlook for the remainder of the year.

Despite the challenges, some analysts remain optimistic about Lululemon’s long-term prospects, citing strong sales plans and successful product launches. The company is expected to strategically adjust prices and improve sourcing efficiency to counteract the negative impacts. With a Moderate Buy consensus rating and an average price target suggesting a modest upside, investors are closely watching how Lululemon navigates the current macroeconomic uncertainties and whether it can capitalize on growth opportunities in key markets like China.