Key Takeaways lululemon sees menswear strength and refreshed innovation as it navigates softer U.S. sales.LULU is boosting agility with faster cycles and more newness, aiming to scale adjacent areas like footwear.lululemon targets a rebound in 2026 as it rebalances assortments and manages tariffs and markdowns.lululemon athletica inc.’s (LULU) second-quarter fiscal 2025 earnings call shows the brand at an inflection point, especially as U.S. sales soften and core casual franchises lose steam. Yet within thi ...

Lululemon ( LULU ) currently trades at around $184, miles below its late 2023 peak of above $500 per share. It's been a while since I covered LULU back in May 2023 , when itI am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I have developed a keen interest in equity ...

Lululemon ( LULU ) currently trades at around $184, miles below its late 2023 peak of above $500 per share. It's been a while since I covered LULU back in May 2023 , when itI am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I have developed a keen interest in equity ...

Group 1 - The article discusses potential investment opportunities in stocks that have significantly declined in value, specifically highlighting Lululemon, Cava, and Freshpet, which have all lost over 50% of their value in 2025 [1][8] - Lululemon has experienced a 52% drop in 2025, with its long-standing streak of double-digit revenue growth expected to end, showing only single-digit growth in recent quarters [3][4] - The company's profitability is under pressure due to declining earnings and negative comparable sales in the Americas, which are impacting store-level operating margins [4][5] Group 2 - Lululemon is facing a significant reduction in gross profit, estimated at $240 million this fiscal year, due to tariffs and the inability to pass on cost increases to consumers [5][6] - Analysts predict a deceleration in revenue growth to 3% year-over-year for the fiscal third quarter, with a 22% drop in earnings per share, and anticipate negative revenue growth during the holiday quarter [6][7] - The partnership with American Express, offering Lululemon credits, may further diminish the brand's value and exacerbate margin pressures [7]

Lululemon isn't the unstoppable growth machine it once was, but it is too early to give up on the company.Lululemon (LULU +1.24%) has spent years as one of the most reliable growth stories in retail. The company built a premium brand, expanded into new categories, and delivered margins that most apparel companies could only envy. Investors grew comfortable with a simple narrative: Lululemon sets the trend, and everyone else follows.But the latest results tell a different story. While the company continues t ...

Core Insights - Lululemon Athletica is facing challenges after years of consistent growth, with recent quarters showing a decline in U.S. demand and increased competition, leading to one of the lowest stock valuations in years [2][13] - The company needs to focus on three key priorities to regain momentum: product discipline, stabilizing U.S. demand, and restoring margin momentum [2][14] Group 1: Product Discipline - Product execution is central to Lululemon's brand identity, but recent inconsistencies have emerged, straying from its proven merchandising strategy [3][4] - Management has acknowledged these issues and plans to increase the share of new styles in assortments from 23% to 35% and shorten design-to-market lead times to reignite demand [5] Group 2: U.S. Demand Stabilization - Lululemon reported a 3% revenue decline on a constant currency basis due to softer traffic and increased price sensitivity among shoppers, which is significant for a brand that previously thrived despite economic fluctuations [7][8] - The company does not require explosive growth but needs to stabilize performance, improve category performance, and enhance store engagement to reassure investors [8][9] Group 3: Margin Momentum - Lululemon has experienced a 1.1% decline in gross margin due to new tariff rules and higher import costs, which are impacting earnings growth [10][11] - To address margin compression, the company must manage inventory tightly, improve sourcing efficiency, and maintain pricing strength while optimizing its cost structure [11][12]

Core Viewpoint - Lululemon Athletica has significantly underperformed in the stock market in 2025, losing 52% of its value, while the S&P 500 has gained 16% [1] - Despite poor stock performance, Lululemon's business fundamentals have shown strong growth, with revenue more than doubling and earnings per share tripling over the last five years [3] Group 1: Stock Performance - Lululemon is the fourth-worst performer in the S&P 500 for 2025, with a current stock value of $480 from an initial $1,000 investment [1] - Over the last three years, Lululemon's stock is down almost 50%, and down 49% over the last five years, while the S&P 500 has increased by 69% and 88% respectively [2] Group 2: Business Performance - Lululemon's revenue has more than doubled over the past five years, and its earnings per share have tripled, indicating strong business performance [3] - The current valuation of Lululemon stock is at 11.5 times its earnings, the lowest in over a decade, excluding the Great Recession [4] Group 3: Market Dynamics - In fiscal 2024, North America accounted for 75% of Lululemon's total sales, but growth in this region is slowing [8] - International sales grew by 22% in the fiscal second quarter of 2025, indicating potential for future growth despite sluggish performance in North America [9] Group 4: Future Outlook - There is considerable room for Lululemon to grow internationally, with the potential for its international revenue base to double in the coming years [10] - Given strong profitability, growth opportunities, and a cheap valuation, Lululemon is expected to perform better over the next five years compared to the last five [10]

Core Insights - Lululemon Athletica has been a strong and profitable player in retail for over a decade, known for its premium brand and enviable margins [1] - Recent challenges include slowing growth, margin pressure, and a significant stock rerating that has affected investor confidence [1][2] Business Model - Lululemon's success is attributed to its disciplined business model, selling performance apparel at premium prices while controlling distribution through company-owned stores and a robust online presence [3] - The company has expanded its product offerings beyond yoga to include men's clothing, running, training, and everyday athleisure, transforming it into a global lifestyle brand [4] Current Challenges - U.S. sales have shown signs of cooling, with the Americas region experiencing a 4% decrease in comparable sales in the latest quarter, indicating cautious consumer behavior [7] - Margin pressure is increasing due to new U.S. tariff rules and higher import costs, which are compressing profitability and reducing earnings leverage [8]

The athleisure brand’s estranged founder, Chip Wilson, is telling anyone who will listen how the current leadership is messing up. https://t.co/pOP7RiEN3z ...

The athleisure brand's estranged founder, Chip Wilson, is telling anyone who will listen how the current leadership is messing up. ...