lululemon athletica inc. (LULU)

Lululemon's stock has experienced a notable decline in the past six months. Lower earnings per share (EPS) guidance in Q1 2025 led to a significant drop in the stock price, despite strong revenue growth. A shareholder lawsuit was filed, alleging that the company's failure to effectively integrate a diversity program and issues with the launch of its "Breezethrough" leggings negatively impacted the stock price. Lululemon cut its annual sales and profit forecasts due to slowing demand in North America and product missteps, including the recall of the "Breezethrough" leggings. Morgan Stanley downgraded Lululemon's stock rating, citing concerns about performance in the Americas. The stock reached a 52-week low around June 2025.

Lululemon's business is subject to seasonal patterns, with a significant portion of its operating profit recognized in the fourth fiscal quarter due to the holiday season. Revenue also tends to rise in the first quarter and generally peaks towards the end of the year. The company strategically introduces more seasonal products to boost its U.S. business, and demand appears to increase with warming weather.

Lululemon Athletica Inc. is a Canadian multinational company that designs, distributes, and retails technical athletic apparel, footwear, and accessories. Its product portfolio includes athletic wear for activities like yoga, running, and training, as well as footwear and fitness-related accessories. The company markets its products under the "Lululemon athletica" and "Lululemon studio" brands and sells them through physical stores, e-commerce, and wholesale customers.

Lululemon Athletica Inc. has a significant global presence, operating in the Americas, Asia-Pacific, Europe, and the Middle East. Its largest market is the Americas, primarily the United States and Canada. In Asia-Pacific, Lululemon has a presence in countries such as China, Australia, South Korea, Japan, Malaysia, and Singapore. European operations extend to the UK, Germany, France, Ireland, the Netherlands, Norway, and Sweden. The company also has franchised locations in the Middle East and supports its global operations with corporate offices, distribution centers, and hundreds of retail stores.

Lululemon's brand reputation has faced challenges in the past year. The founder's controversial comments sparked public backlash, leading to calls for boycotts. A shareholder lawsuit stemmed from claims that the company failed to integrate a diversity program effectively. The recall of the "Breezethrough" leggings also negatively affected the company's reputation and contributed to a decline in sales forecasts.

Lululemon Athletica Inc. has a diverse ownership structure, with a significant portion held by institutional investors, approximately 82% of the company's shares. Major institutional owners include Fmr Llc, Vanguard Group Inc., and BlackRock, Inc. The largest individual shareholder is Dennis J. Wilson, the company's founder, who owns 17.23 million shares, representing 15.02% of the company.