Lululemon Shares Tumble as Growth Forecast Slashed

The athletic apparel retailer Lululemon, once a darling of the sector, is facing significant headwinds. A stark downward revision of its full-year guidance has rattled investor confidence, revealing deep-seated operational challenges within its crucial North American business. The announcement has prompted a critical reevaluation of the company’s near-term prospects.

The catalyst for the recent sharp decline was the earnings report released on September 4. While the company managed to surpass analyst profit expectations for the quarter, this achievement was entirely overshadowed by a severe cut to its annual forecast. Management slashed its 2025 revenue outlook by approximately $300 million. More dramatically, its earnings per share guidance was reduced by nearly $2.

This disappointing revision is attributed to a confluence of factors. A noticeable... Read more...