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Lululemon Stock Sinks in 2025 as Discounted Valuation Fuels Turnaround Debate

Backers cite a discounted valuation plus fresh product launches as a path to a multiyear recovery.

Overview

  • Lululemon shares are down about 53% year to date as of Oct. 28, reflecting a year of pressure on demand and profitability.
  • Tariffs, inflation and intensifying competition have slowed growth and weighed on margins, feeding uncertainty about the outlook.
  • The stock trades around 13 times forward earnings in the report, a steep discount to peers such as Nike at just over 40 times.
  • Management is leaning on product innovation, including a move into NFL-branded apparel, as part of its recovery effort.
  • Analysis from The Motley Fool frames potential share-price gains by 2028 as a scenario, while take-private chatter involving founder Chip Wilson remains speculative.