Lululemon Stock Plunges 17.12% on Sales Miss, Tariff Costs

On September 5, 2025, Lululemon Athletica's stock experienced a significant drop of 17.12% in pre-market trading, marking a notable decline in investor sentiment.

The recent decline in Lululemon Athletica's stock price can be attributed to several factors. The company reported a narrow sales miss for the second quarter, despite exceeding earnings estimates. This discrepancy led to a sharp decline in the stock price, as investors reacted negatively to the underperformance in sales.

Additionally, Lululemon Athletica cut its full-year outlook, citing costs related to U.S. tariffs and product issues. This revision in guidance further dampened investor confidence, as the company's ability to navigate external challenges and maintain profitability came into question. The combination of these factors contributed to the significant drop in the stock price.

Furthermore, the company's weak U.S. performance and industry-wide challenges also played a role in the stock's decline. The athletic apparel retailer's struggles in the domestic market, coupled with broader industry headwinds, raised concerns about the company's future prospects and its ability to compete effectively in a challenging retail environment.