Lululemon Stock Drops 5.26% in Two Days as Job Cuts and Revenue Concerns Mount, Trading Volume Ranks 60th

On June 18, 2025, Lululemon Athletica Inc. (LULU) experienced a 2.81% decline in its stock price, marking the second consecutive day of losses, with a total decrease of 5.26% over the past two days. The company's trading volume reached 10.02 billion, placing it at the 60th position in the day's market activity.

Lululemon Athletica Inc. has announced significant changes to its organizational structure, resulting in the elimination of approximately 150 corporate jobs. These job cuts primarily affect employees within the company's store support centers. The decision comes as part of a broader effort to enhance operational agility and invest in future growth. A company spokesperson emphasized that this restructuring is not taken lightly and that the company is committed to supporting affected employees during the transition.

Despite reporting revenue gains in the first quarter, Lululemon's CEO, Calvin McDonald, expressed caution regarding U.S. consumer spending. This sentiment contributed to a 22% drop in the company's shares to $258 in after-hours trading on June 5. The company has since provided second-quarter guidance, projecting net revenue between $2.54 billion and $2.56 billion, while maintaining its annual top-line forecast. However, Lululemon has revised its earnings per share (EPS) forecast down to a range of $14.58 to $14.78, from the previous range of $14.95 to $15.15.

Analysts have weighed in on the company's performance. BMO analyst Simeon Siegel noted that the updated EPS forecast marks the first fiscal-year EPS lowering in the first quarter since 2014. He expressed concerns about the long-term domestic revenue sizing of the brand. UBS softlines analyst Jay Sole has maintained a "neutral" rating on Lululemon shares, highlighting the potential for a slowdown in the U.S. market due to tariffs and the risk of decelerating sales growth in China.