Lululemon unraveling at its seams?
Lululemon (LULU) traded at $415 in January 2025. Today it sits at $98, a seven year low, down 42% over the past year and 77% over the past five. The fell another 17% in a single day after its second quarter on September 3 (for the quarterly period ended August 2, 2026), and third quarter points to more of the same: of $2.29 to $2.32 billion, down 10% . The question isn't whether the last two years have been bad. It's whether a company that already turned around one brand crisis a decade ago is positioned to do it again, or whether this time the damage doesn't heal.
What is Lululemon?
Founded in Vancouver in 1998, Lululemon built its business on premium technical athletic apparel, most recognizably its leggings, made from proprietary fabrics. It has since expanded into menswear, footwear, and personal care, but the core pitch has never changed: charge a real premium over mass market athletic wear, and justify it with quality and brand. The company sells primarily through its own stores and online, with a smaller wholesale and outlet business.