Lululemon’s stock hit an all-time high of $511.29 in December 2023, marking a 5,581% gain from its IPO price. Despite its past success, the stock now trades at around $220 due to slowed growth and increased competition. The company’s revenue growth has decelerated over the past three years.

Lululemon’s “Power of Three” plan exceeded expectations, but the brand faced challenges in the U.S. market, leading to a decline in women’s apparel sales. The company aims to reach $12.5 billion in revenue by 2026. Analysts predict modest growth in revenue and EPS over the next few years.

Lululemon may struggle in the North American market and focus on overseas expansion. Its stock is now considered a value stock, trading at 15 times earnings. While the company faces challenges, there may be potential for a revival in the future. The Motley Fool Stock Advisor team does not currently recommend investing in Lululemon.

Read more at Nasdaq: Is the Party Over for Lululemon Stock?