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.

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.