Lululemon Stock Plunges 11.59% Amid Earnings Slowdown

Lululemon Athletica's stock price plummeted 11.59% in pre-market trading on April 3, 2025, marking a significant decline for the athletic apparel company.

Lululemon Athletica has experienced a challenging period, with its long-term earnings per share (EPS) growth rate declining from an average of over 20% per year to just 10.5% over the past 12 to 18 months. This slowdown in growth has contributed to investor concerns and a subsequent drop in the company's stock price.

The company's weak outlook has led to price target cuts by analysts, further exacerbating the decline in its stock price. The recent drop of 14.2% on Friday was the worst single-day fall for Lululemon in a year, reflecting the market's disappointment with the company's performance and future prospects.

Additionally, Lululemon's stock has been affected by broader market uncertainties, including concerns over tariffs and global economic risks. These factors have contributed to a volatile trading environment, with Lululemon's stock price experiencing significant fluctuations in recent months.