Why Lululemon Stock Crashed Today

Lululemon (LULU) shares dropped 17.38% to $100.61 after cutting full-year revenue and earnings guidance. Q2 revenue fell 4% YoY to $2.4B, with Q3 guidance between $2.29B and $2.32B. Trading volume surged 1,000% above average. The company faces leadership transition challenges and a 51% YTD stock decline.

U.S. stocks fell Friday as a strong jobs report increased expectations of a Fed rate hike. The Labor Department reported 162,000 jobs added in August, above consensus. Markets now price a 58.4% chance of a 25-basis-point rate hike in September. The S&P 500, Nasdaq, and Dow all declined. Lululemon and Adobe dropped on company-specific news.

Lululemon (LULU) shares dropped 17% after reporting Q2 revenue of $2.4B, down 4% YoY, and cutting FY2026 guidance. Weak sales in China and North America, with comps down 8% and 12% respectively, were cited. Bank of America maintained a Neutral rating but lowered its price target to $122.

Michael Burry's largest position, Lululemon (LULU), has fallen over 52% this year. The company reported Q2 revenue of $2.42B, missing estimates, and cut its full-year outlook. Gross margins increased 2% YoY to 60.5%. Analysts have mixed views, with some slashing price targets. Burry remains invested, citing strong margins and potential CEO changes.

Lululemon's shares fell 18% after reporting lower Q2 profit, revenue, and comparable sales, prompting a downgrade in annual guidance. The company cited inconsistent customer response and slowdown in leggings sales. Analysts attributed the decline to product mix issues and poor performance in key markets, including China. Lululemon plans to streamline merchandise and refocus on full-price products.

Lululemon (LULU) shares fell 17.7% after reporting a 4.3% YoY decline in Q2 net revenue to $2.42B and cutting full-year guidance. Excluding tariff refunds, operating profits fell 13.4%. The company cited slowing traffic, soft product rollouts, and China-related challenges. LULU is down 52.3% YTD.