Lululemon Stock Plummets 21% in After-Hours Trading as Earnings Guidance Cut Sends Shares to 41st in Volume Ranking

On June 5, 2025, Lululemon Athletica Inc. (LULU) experienced a significant decline, with its stock price dropping by 1.32%. The company's shares were trading at a volume of 14.55 billion, marking an 88.55% increase from the previous day and ranking 41st in the day's trading volume.

Lululemon's stock price plummeted following the company's decision to lower its full-year earnings guidance. Despite exceeding Wall Street's expectations for the fiscal first-quarter earnings, the company cited a "dynamic macroenvironment" as the reason for the downward revision. This announcement led to a substantial decline in the stock price, reflecting investor disappointment and concerns about the company's future performance.

The company's decision to cut its full-year guidance was met with a sharp sell-off in after-hours trading, with shares plunging by 21%. This significant drop highlights the market's sensitivity to changes in earnings guidance and the broader economic uncertainties that Lululemon faces. The company's stock has shed 14% year-to-date, indicating a challenging environment for the apparel giant.

Lululemon's weaker-than-expected comparable sales and revised guidance for the second quarter and fiscal year 2025 further contributed to the stock's decline. The company's decision to lower its sales forecast below expectations has raised concerns about its ability to navigate the current economic landscape and maintain its growth trajectory.