Lululemon Athletica Stock News

Investor sentiment appears to be broadly improving since President Donald Trump dialed down some of his threatened tariffs for the time being. As a result, the market has slowly been rising back toward its record high.

Canadian athletic wear maker Lululemon sued Costco in California federal court on Friday, alleging that the wholesaler sells "knockoff" sweatshirts, jackets and pants that unlawfully copy its products.

Lululemon stock price crashed from its all-time high in 2024 to a low of $225, its lowest level since May 20. LULU stock plunged by over 55% from its highest point in 2023, bringing its market capitalization to $29 billion, down from the all-time high of $68 billion.

Lululemon Athletica Inc (NASDAQ:LULU) is slashing about 150 corporate jobs as part of an organizational restructuring, the company revealed last week. A spokesperson for the Vancouver-based athleisure brand told media that the impacted employees are part of its store support centers.

Lululemon stock (NASDAQ: LULU) has lost 30% since announcing Q1 2025 earnings and is currently priced at approximately $229, a 40% drop year-to-date, significantly trailing the S&P 500's 2% increase. However, this selloff appears to be driven more by sentiment rather than being fundamentally warranted.

lululemon remains a powerful brand with loyal customers, despite recent stock decline and cautious management guidance. Growth in the Americas is slowing, but strong international expansion, especially in China and Europe, supports the long-term investment thesis. lululemon's innovation, financial strength, and brand loyalty keep it ahead of rising competition and protect its premium status.

Downgrades are detrimental to a stock's price momentum and often lead to sustained downtrends. However, sometimes good stocks are plagued by bad news that ultimately leads to a buying opportunity.

Tom Yeung here with your Sunday Digest .  Last week, I showed you three swing trade stocks to buy immediately.