Jim Cramer Reveals Why lululemon athletica inc. (LULU)’s Shares Fell By 18%

Group 1 - lululemon athletica inc. (LULU) shares fell by 18.6% following the second-quarter earnings report, which indicated struggles with tariff impacts [3] - The company's fiscal full-year midpoint earnings per share guidance was set at $12.87, significantly below analyst estimates of $14.45 per share [3] - High pricing strategies are identified as a contributing factor to lululemon's challenges, particularly in competition with lower-priced alternatives like those from Costco [3] Group 2 - Despite the current challenges, there is potential for lululemon as an investment, although some analysts believe AI stocks may offer better returns with lower risk [4]