Lululemon's $930M Volume Climb to 93rd Rank as Shares Edge Up 1.68% Amid Divergent Valuation and Global Expansion Push

On August 15, 2025, Lululemon (LULU) rose 1.68% to close at $198.73, with a trading volume of $0.93 billion, ranking 93rd in the market. The stock has declined 64% from its 52-week high but remains supported by strong brand loyalty and a robust international growth strategy. Recent reports highlight a 7% year-over-year revenue increase in the first quarter, driven by resilient consumer demand despite a broader slowdown in the apparel sector.

Analysts note a divergence between Lululemon’s stock valuation and its underlying business fundamentals. The company maintains a 23% operating margin, reflecting its premium positioning in the athleisure market. Management has accelerated a $1.77 billion share buyback program over the past year, reducing shares outstanding and potentially boosting earnings per share. International markets, particularly China and Europe, offer significant expansion potential, with mainland China revenue growing 22% year-over-year.

Investor sentiment shifted slightly after Michael Burry’s firm disclosed a $11.9 million stake in Lululemon, representing 2.05% of its portfolio. This move, coupled with the stock trading at a five-year low P/E ratio of 12.6, suggests value investors are recognizing its discounted price. However, North American growth has slowed to a five-year low of 7.32%, reflecting broader market challenges in the athleisure category. Despite this, Lululemon continues to outperform competitors like Nike, which faces declining sales in the same region.

The backtest results for a strategy of buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 show a total profit of $10,720, indicating moderate returns amid market fluctuations.