Should You Buy Lululemon Athletica Stock Amidst Slowing Sales Growth?

Lululemon Athletica stock may be a smart buy-the-dip candidate despite slower sales growth and a 68% decline from its all-time high. The apparel company focuses on the premium end of the market with its technical fabrics and has pricing power, with a gross margin averaging 57.6% in the past five years. While sales growth has slowed down in the U.S., China is experiencing robust demand, with revenue up 25% in Q2 2025. The stock trades at a bargain valuation, down 51% in the past five years, despite still growing revenue and remaining profitable.