Lululemon Stock Plunges 10.71% on Weak Guidance

On March 28, 2025, Lululemon Athletica's stock experienced a significant drop of 10.71% in pre-market trading.

Lululemon Athletica's stock has been under pressure due to weak forward guidance and concerns over consumer spending. The company's fourth-quarter earnings exceeded expectations, but the market was disappointed by the guidance for the current quarter and full fiscal year. The athletic apparel retailer warned of negative industry-wide traffic, which has weighed on investor sentiment.

Despite posting better-than-expected Q4 2024 results, Lululemon's stock has continued to decline. The company's earnings per share were $6.14, surpassing forecasts, but the stock fell significantly in after-hours trading due to the disappointing guidance. The downbeat outlook has led to a decline in shares, with the stock falling to 2025-lows below $302.

Lululemon's shares have been impacted by the broader market sentiment and consumer confidence. The company's forecast for full-year sales was below Wall Street's expectations, contributing to the stock's decline. The weak guidance has overshadowed the strong earnings report, leading to a significant drop in the stock price.