Lululemon made one really stupid decision this year that explains why its stock is getting blown up

Lululemon (LULU) cut its full-year outlook, citing weaker brand sentiment and traffic, particularly in North America and China. Revenue fell 4% to $2.4B, with comparable sales dropping 10%. Gross margin expanded 200 bps to 60.5%, but product margin fell 150 bps. The company lowered its fiscal 2026 GAAP EPS guidance to $9.48-$9.73 and revenue outlook to $10.35B-$10.50B. Shares were down 18.49% premarket.

Lululemon Athletica's shares dropped 20% premarket after cutting its full-year forecast for the second time, citing shrinking margins and market-share loss. Revenue in the Americas fell 8% YoY in Q2. Incoming CEO Heidi O'Neill faces challenges, with analysts expressing uncertainty about near-term and long-term recovery. The company plans to increase marketing spending to rebuild brand appeal.

Lululemon shares dropped 20% after reporting a 4% revenue decline and 9% fall in comparable sales for Q2, with interim CEO blaming social media. Zscaler beat earnings expectations, with revenue up 25% YoY, benefiting from AI-related cybersecurity demand. The August jobs report is due, with economists expecting 53,000 jobs added and unemployment steady. NFL's international expansion continues with a game in Australia, potentially boosting trading volumes for Robinhood's Rothera.

Lululemon (LULU) shares dropped 15% after Q2 earnings missed estimates and the company cut its full-year sales forecast. Investor Michael Burry, with a 17.4% portfolio stake, said he may add to his position if the stock falls below $100. The decline was attributed to weaker China demand and U.S. competition. Interim co-CEO Meghan Frank highlighted product development and expense control efforts.

Stock futures are mixed ahead of the August jobs report, which may influence the Fed's interest rate decision. Tesla is under investigation by auto safety regulators, and its shares fell 3% premarket. Lululemon shares dropped 20% after lowering its full-year revenue outlook. Adobe named Anil Chakravarthy as its new CEO, and its stock is down 4% premarket.

Lululemon (LULU) stock fell 20.56% premarket to $96.73 after cutting full-year sales and EPS guidance. Management cited demand issues, including declines in Americas and China. Analysts remain cautious, with UBS noting potential EPS downside and balanced risk. Technical indicators are mixed, with longer-term signals suggesting further declines.