Lululemon Stock Plummets on Disappointing Guidance
Generated by AI AgentWesley Park
Thursday, Mar 27, 2025 4:39 pm ET1min read
LULU--
Ladies and Gentlemen, BUYERS BEWARE! Lululemon AthleticaLULU--, the darling of the athleisure world, has just taken a nosedive, and it's not pretty. The stock has been on a rollercoaster ride, and the latest guidance has left investors reeling. Let's dive in and see what's going on!
First things first, Lululemon's sales growth has slowed to a crawl. We're talking a measly 10% growth in the most recent quarter, compared to the jaw-dropping 30%+ growth we've seen in the past. This is a HUGE red flag, folks! The company's biggest market, North America, has seen sales growth plummet to less than 4% in the first quarter of 2024. That's a far cry from the pre-pandemic days when sales were growing at a healthy 20% a year.
But that's not all! The departure of Lululemon's Chief Product Officer, who has been the driving force behind the company's innovation since 2018, has investors on edge. This leadership change comes at a time when LululemonLULU-- is facing stiff competition from up-and-coming brands like Alo Yoga and Vuori. These brands are hot on Lululemon's heels, and they're not afraid to steal market share.
Now, let's talk about the numbers. Lululemon's fourth quarter revenue increased by 13% to $3.6 billion, and its full-year revenue increased by 10% to $10.6 billion. That sounds good, right? Wrong! The market was expecting more, and Lululemon's stock has been paying the price. The company's diluted earnings per share (EPS) for the fourth quarter of 2024 were $6.14, compared to $5.29 in the fourth quarter of 2023, and its full-year diluted EPS were $14.64, compared to $12.20 in 2023. But investors aren't buying it, and the stock has been underperforming as a result.
So, what's the verdict? Lululemon is in a tough spot, and investors are feeling the heat. The company's slowing sales growth, increased competition, and leadership changes have left investors questioning Lululemon's ability to continue growing at its historical rate. But don't count Lululemon out just yet! The company has a strong brand and a dedicated customer base, and it's not going down without a fight. Stay tuned, folks, because this story is far from over!
Ladies and Gentlemen, BUYERS BEWARE! Lululemon AthleticaLULU--, the darling of the athleisure world, has just taken a nosedive, and it's not pretty. The stock has been on a rollercoaster ride, and the latest guidance has left investors reeling. Let's dive in and see what's going on!
First things first, Lululemon's sales growth has slowed to a crawl. We're talking a measly 10% growth in the most recent quarter, compared to the jaw-dropping 30%+ growth we've seen in the past. This is a HUGE red flag, folks! The company's biggest market, North America, has seen sales growth plummet to less than 4% in the first quarter of 2024. That's a far cry from the pre-pandemic days when sales were growing at a healthy 20% a year.
But that's not all! The departure of Lululemon's Chief Product Officer, who has been the driving force behind the company's innovation since 2018, has investors on edge. This leadership change comes at a time when LululemonLULU-- is facing stiff competition from up-and-coming brands like Alo Yoga and Vuori. These brands are hot on Lululemon's heels, and they're not afraid to steal market share.
Now, let's talk about the numbers. Lululemon's fourth quarter revenue increased by 13% to $3.6 billion, and its full-year revenue increased by 10% to $10.6 billion. That sounds good, right? Wrong! The market was expecting more, and Lululemon's stock has been paying the price. The company's diluted earnings per share (EPS) for the fourth quarter of 2024 were $6.14, compared to $5.29 in the fourth quarter of 2023, and its full-year diluted EPS were $14.64, compared to $12.20 in 2023. But investors aren't buying it, and the stock has been underperforming as a result.
So, what's the verdict? Lululemon is in a tough spot, and investors are feeling the heat. The company's slowing sales growth, increased competition, and leadership changes have left investors questioning Lululemon's ability to continue growing at its historical rate. But don't count Lululemon out just yet! The company has a strong brand and a dedicated customer base, and it's not going down without a fight. Stay tuned, folks, because this story is far from over!
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