Lululemon Stock Suffers Huge Losses as The Company and Its Sector Experience Extreme Headwinds

As of September 17, 2025, Lululemon has shed just over 57% of its stock price since the beginning of the year. On the 5th, it suffered headline losses, dropping over 18% from its previous close. So, what might the future of Lululemon, and its industry as a whole look like?

Overall, the athleisure space has experienced numerous economic headwinds in the past year. The company, and the retail sector as a whole, have struggled with profitability as tariffs significantly narrow margins. Recently, the de minimis exemption, a policy which allowed tariff exemptions for low value products, was eradicated. The impact is slated to cost Lululemon $240m in 2025. The company has repeatedly lowered its guidance throughout the year, with recent adjustments presenting some of the most extreme to date. On September 4th, Lululemon significantly slashed its outlook, forecasting sales for the next three months to approximately $2.5bn, significantly lower than analyst expectations. Additionally, high interest rates, and uncertainty in the jobs market have led to a recent slowdown in discretionary spending. Furthermore, broader industry forecasts suggest sluggish growth in fashion, especially pertaining to nonluxury retailers. If that wasn’t enough, the athleisure space has also become increasingly saturated with a rising number of copy cats, and other big players entering the market. Lululemon has lost loyal customers to upcoming rivals like Vuori, and Alo Yoga; both of which are expanding rapidly through large investment in influencer marketing. Even the CEO of Lululemon, Calvin McDonald, admitted their releases were becoming "too predictable", but what do you think? Teenagers are a target market for Lululemon - is this a once in a lifetime buying opportunity or are these recent trends here to stay? Let us know what you think in the comments.

Writing Sources:

1. Chia, Osmond. Lululemon Shares Slide as Tariffs and Weaker Sales Take Their Toll. 5 Sept. 2025, www.bbc.com/news/articles/cy9n4e1g1gyo.

2. Thielen, Amy. “Lululemon Cuts Forecast on Tariff Headwinds, Soft U.S. Sales.” Seeking Alpha, 4 Sept. 2025, seekingalpha.com/news/4492461-lululemon-cuts-forecast-on-tariff-headwinds-soft-us-sales. Accessed 6 Sept. 2025.

3. McColl, Bill. “Lululemon Cuts Its Outlook as Sales Slow and Tariffs Squeeze Profits. Its Stock Is Plunging.” Investopedia, 2025, www.investopedia.com/lululemon-cuts-its-outlook-as-sales-slow-and-tariffs-squeeze-profits-its-stock-is-plunging-11804090. Accessed 6 Sept. 2025.