LULU stock fell 57% from its 2023 peak as same-store sales growth slowed to 2% and Americas comps declined 3%.
Lululemon Athletica (NASDAQ: LULU) closed at $127.18 on May 22, marking a 52-week low and a 57% drop from its $300 level a year ago. The decline reflects investor concerns over slowing growth and weak demand in its core markets.
In the latest fiscal year, revenue rose 6% excluding currency effects, but same-store sales grew just 2%. In the Americas, comps fell 3%, with management citing lower store traffic and order value. The company forecasts revenue growth of 2% to 4% this year and a 7% to 9% drop in diluted earnings per share.
Founder Chip Wilson and activist investor Elliott Management have criticized management amid the stock’s underperformance. Leadership changes and innovation struggles are key challenges ahead.