Lululemon Stock Plunges 17% After It Slashes FY Revenue Outlook

Sep 4 - Shares of Lululemon Athletica LULU plunged about 17% after the company cut its full-year outlook following mixed second-quarter results. Management lowered fiscal-2025 revenue guidance to $10.85 billion$11.00 billion, down from a prior $11.15 billion$11.30 billion range and below the $11.20 billion Street consensus.

The retailer beat earnings-per-share expectations but missed on top line as U.S. sales cooled and product execution faltered. Lululemon now expects third-quarter sales between $2.47 billion and $2.50 billion, short of the $2.56 billion consensus, and set Q3 EPS at $2.18$2.23 versus a $2.95 estimate. Management pointed to tariffs, weaker U.S. demand and assortment missteps as the primary near-term headwinds.

Investors punished the stock quickly, signaling skepticism that Lululemon can restore momentum without aggressive promotion or margin sacrifice.

The company plans to tighten merchandising and fix execution issues, but the market will want clear proof of improving same-store sales and margin stabilization before it rewards the name again.