Why Everyone Is Talking About Lululemon Stock Now

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]