The Motley Fool·2025-07-13 15:00Group 1: Lululemon Athletica - Lululemon's stock fell over 20% in a single trading day in June, ending the month down 25% [3][4] - Same-store sales grew by only 1% year over year, and operating margin decreased by 110 basis points to 18.5% [4] - The company reduced its earnings outlook for the full year by nearly 25% to $14.68 per share at the midpoint, while reaffirming sales growth guidance of 7% to 8% [4][5] - Lululemon is raising prices and diversifying sourcing channels to mitigate tariff impacts, with 75% of revenue coming from the Americas [5] - After the decline, Lululemon's stock is trading at a price-to-earnings (P/E) ratio of 16, less than half its five-year average P/E [5] Group 2: J.M. Smucker - J.M. Smucker's stock dropped 12.8% to a 52-week low of $93.30 per share in June, following a 3% decline in sales and a 13% decline in adjusted earnings per share (EPS) for Q4 of fiscal 2025 [6] - The decline was attributed to low demand for dog snacks and sweet baked goods, recent divestment of pet food brands, and rising costs [6] - Smucker anticipates total sales growth of only 2% to 4% in fiscal 2026, down from 7% last year, with adjusted EPS expected to fall by 11% [6] - Despite challenges, Smucker's Uncrustables brand reported double-digit sales growth in Q4 and is nearing $1 billion in sales [7] - The company is taking decisive actions to revive its sweet baked segment, which has struggled since acquiring Hostess Brands in 2023 [8]