Skip to content

Lululemon stock crashes 15% worst opening since 2020

Lululemon stock crashes 15% worst opening since 2020
Elmaz Sabovic

In the realm of stock markets, even the smallest details can have a big impact. This was demonstrated recently by Lululemon (NASDAQ: LULU) after its earnings release on March 21. 

Despite the company posting impressive results, with a double earnings beat—$5.29 earnings per share compared to the expected $5.00, and revenue of $3.21 billion surpassing the expected $3.19 billion—the stock took a surprising nosedive, dropping by 13% in pre-market just hours after the conference concluded.

LULU stock 24-hour price chart. Source: Google Finance
LULU stock 24-hour price chart. Source: Google Finance

Investors were left puzzled by this unexpected turn of events, prompting questions about what exactly went wrong.

The answer is in the guidance for LULU stock

Like its counterparts, Lululemon has been facing challenges from uncertain demand and a slowdown in discretionary spending, which has notably impacted the apparel sector.

Investors are closely monitoring Lululemon’s performance in North America, its largest sales region, as it grapples with tougher comparisons from the previous year and contends with consumers prioritizing experiences over purchasing items like clothing and footwear.

CEO Calvin McDonald addressed these challenges on a call with analysts, acknowledging the shift in U.S. consumer behavior and characterizing the beginning of the year as slower in this market. 

Despite these hurdles, McDonald emphasized the company’s proactive stance, viewing the situation as an opportunity to invest strategically to sustain its growth momentum. He also highlighted the strength of Lululemon’s business outside the U.S., particularly in international markets like Canada.

However, the stock market remained unconvinced, swiftly punishing LULU stock. It went from up 2% in after-hours trading to plummeting 13% in the premarket session.

LULU stock performance

Since the markets opened on March 22, LULU stock has been trading at $409.20. It experienced losses of -15.30% in the last 24 hours, adding to a -13.15% decrease over the past five trading sessions and a -10.91% slide compared to the previous month.

LULU stock 30-day price chart. Source: Google Finance
LULU stock 30-day price chart. Source: Google Finance

Traders will soon determine if this recent setback for LULU stock is merely a temporary hiccup in its otherwise positive trajectory, or if it signals potentially more troubling retracements ahead.

Buy stocks now with eToro – trusted and advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts