Lululemon Shares Dropped After the Company Cut Its Annual Forecast. Is the Stock a Buy Amid the Selloff?
Lululemon stock is down 43% so far this year.
Lululemon Shares Dropped After the Company Cut Its Annual Forecast. Is the Stock a Buy Amid the Selloff?
Overview
A week ago, I predicted that Lululemon Athletica (NASDAQ:LULU) stock would take a beating if the company reported weak earnings or lowered its 2026 guidance. And unfortunately, both of those things happened when the company posted its fiscal 2026 first-quarter report on June 4.
Now the company is trading at an eight-year low, having fallen more than 12% post-earnings. Where does the athleisure company go from here?
Details
First, let’s see what happened. For the quarter ending May 3, Lululemon posted revenue of $2.47 billion, up from $2.37 billion a year ago. However, the cost of goods sold jumped 14% year over year, pushing the company’s gross profit down by more than 4%. On top of that, Lululemon’s selling and general expenses rose 12.4%, to $1.05 billion. All that led to the company’s net income falling 38% to $195 million for the quarter. Earnings per share were $1.69, versus $2.60 in the same period a year ago.
Source
Originally published at www.fool.com.
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