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Lululemon's 2025 Slide Puts Focus on Overseas Growth and a Brand Reset

Investor sentiment is split over valuation versus slowing U.S. demand.

Overview

  • Shares are down more than 50% year to date, leaving the stock at a relatively low earnings multiple compared with its history.
  • Latest results show international sales up about 22% year over year, while the United States grew roughly 1%, underscoring a shift in growth drivers.
  • Tariff changes and the loss of de minimis import relief have raised costs and pressured margins, contributing to a guidance reset.
  • Management is leaning on faster product rollouts, expansion of the men’s line, and accelerated global store openings to reignite demand.
  • Michael Burry disclosed a long position, calling the stock oversold, even as The Motley Fool’s Stock Advisor left it off its current top picks.