From Yahoo Finance: 2025-06-06 12:22:00

Lululemon Athletica (NASDAQ: LULU) stock plummeted 20.2% despite beating earnings expectations by a penny in Q1 2025, with $2.60 per share earned on $2.37 billion in sales, a 7% increase year over year. Same-store sales rose by only 1%, while gross profit margins grew and operating margins fell to 18.5%.

Sales growth outpaced earnings growth due to slimmer profit margins, prompting concern about future performance. Lululemon forecasts Q2 sales growth of 7% to 8% and earnings between $2.85 to $2.90 per share, missing Wall Street’s $3.32 per share expectation. Full-year guidance predicts slowing sales growth and earnings amid concerns over President Trump’s tariffs policy.

Valued at 18 times current-year forecast earnings, Lululemon stock appears overpriced for mid-single-digit growth, prompting a “sell” recommendation from analysts. The Motley Fool Stock Advisor’s top 10 stock picks exclude Lululemon, offering potential high returns from other selections. Their total average return of 997% outperforms the S&P 500.



Read more at Yahoo Finance: Why Lululemon Athletica Stock Crashed Today