lululemon is beginning to show signs of maturing growth in the America's and tariff impacts will be an additional headwind, but the 60% pullback has gone too far. lululemon remains an aspirational brand with strong consumer appeal and solid growth in international markets. Current valuation now looks attractive at 11.4x TTM P/E as it reflects a more reasonable pricing of future growth.
Lululemon Athletica Inc NASDAQ: LULU, once the darling of all retail stocks, has endured one of the ugliest downtrends in the industry this year. Its shares are down about 60% from their January peak, and every bullish rally attempt in the nine months since has been beaten back by the bears.
The same story has played out countless times: A dominant company faces disruption and chooses to bury its head in the sand. Lululemon Athletica (LULU 2.98%), once untouchable atop the athleisure industry, fell into that common trap.
After a rough 2025, two once-popular retailers on Wall Street have fallen out of favor. Lululemon Athletica (LULU 1.76%), the high-end athletic-apparel specialist, recently cut its outlook after weak U.S. demand and higher trade costs pressured profits.
Lululemon (LULU 1.76%) was one of the fashion companies that crushed the market for over a decade. But shares have fallen from their high, and investors are wondering if the best is behind this yoga giant.
In this video, Motley Fool contributor Jason Hall makes the case for Lululemon (LULU 1.76%) as an underappreciated, deeply discounted stock worth buying today.
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