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4w ago

Lululemon Stock Plummets 15% Following Weak 2025 Guidance

Despite exceeding Q4 2024 earnings expectations, the company’s forecast for slower growth, inflation pressures, and tariff concerns has rattled investors.

A Lululemon store in the CF Toronto Eaton Centre shopping mall in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo
Lululemon launched several new lines like Glow Up, BeCalm, and Mile Maker, which all helped “drive guests’ loyalty, repeat purchase, and long-term value,” CEO Calvin McDonald said.
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Overview

  • Lululemon reported Q4 2024 revenue of $3.61 billion and earnings per share of $6.14, both surpassing analyst expectations.
  • The company’s fiscal 2025 guidance disappointed, with projected revenue of $11.15 billion to $11.30 billion and EPS of $14.95 to $15.15, below Wall Street estimates.
  • Shares dropped 15%, marking one of Lululemon’s worst trading days in years, as investors reacted to concerns over slowing North American growth and competitive pressures.
  • CEO Calvin McDonald highlighted inflation, economic uncertainty, and U.S. tariffs as key factors impacting consumer spending and store traffic in the U.S.
  • International sales surged 20% in Q4, and Lululemon plans further global expansion with new stores in Europe, including Italy and Denmark, as part of its long-term growth strategy.