Lululemon Drops 54% YTD, Is LULU Stock Too Cheap to Ignore?

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n=e.getConfig();"smartphone"===n.device&&("finance"===n.property&&"crunch"===n.ytheme&&e.addElementListener(t.searchInput,"click",(function(){var n,o;n="search_input_focus_click",null!==(o=re())&&(oe[n]||(oe[n]=o)),e.addElementListener(t.searchForm,"click",(function(){if(t.ybar){if(t.ybar.classList.contains("ybar-searchbox-assist-fullscreen"))return;t.ybar.classList.add("ybar-searchbox-assist-fullscreen"),t.ybar.classList.add("ybar-searchbox-assist-fadein")}if(!document.documentElement.classList.contains("ybar-overlay")){document.documentElement.classList.toggle("ybar-overlay"),document.body.classList.add("ybar-overlay-noscroll");te("ybar","websrch","",{elm:"expand",subsec:"searchbox",itc:"1"})}}))})),e.addElementListener(t.searchBoxPlaceholder,"click",(function(){zt(e,t)})),e.addElementListener(t.searchBoxPlaceholder,"keydown",(function(n){var 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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Amit SinghMon, September 29, 2025 at 4:58 PM GMT+2 4 min readLululemon Athletica (LULU) has long been a market favorite in the premium athletic wear space, but 2025 has been brutal for the stock. Shares of the company have plunged roughly 53.5% year-to-date, reflecting both a slowdown in U.S. sales and mounting headwinds across the apparel industry.The steep drop has also compressed Lululemon’s valuation.Why Investors Are Excited About Palantir Stock AgainPayPal Could Still Be 20% Too Cheap - Use Options to Play PYPLGovernment Shutdown, Job Report and Other Key Things to Watch this WeekOur exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today!However, is LULU stock too cheap to ignore, or does it lack any immediate catalyst to push its share price higher?The weakness in Lululemon’s share price is primarily due to its struggles in the U.S. market. Sales have slowed as consumers reduce their apparel spending, particularly in performance wear, and become more selective with their purchases. On its most recent earnings call, management acknowledged that the brand has become too predictable, particularly in its casual lines, and has fallen short in setting new trends.The company’s lounge and social offerings have failed to generate the same enthusiasm they once did. In other words, Lululemon’s product pipeline hasn’t been resonating, and customers are spending less frequently.Adding to these challenges are external headwinds. Competition in the athletic apparel market has intensified, with both established rivals and new entrants vying for market share. At the same time, tariffs have added unexpected costs. Roughly two-thirds of Lululemon’s U.S. e-commerce orders are shipped from Canada, many of which previously qualified for tariff exemptions under the $800 de minimis threshold. With that provision removed, Lululemon now has to revamp its network to lower the impact on margins.While management is working to offset these costs through pricing adjustments, vendor negotiations, and cost-cutting initiatives, these efforts will take time to show results.The combined impact of sluggish demand, rising costs, and heightened competition forced the company to trim its revenue and earnings outlook for the year, which further rattled investors.www.barchart.comGiven the sharp selloff in Lululemon stock, it trades at a forward price-earnings ratio of 13.3x. This multiple looks historically cheap for a company like Lululemon, which has consistently delivered strong growth in the past and has solid brand power.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,688.46 +27.25 (+0.41%)Dow 3046,397.89 +81.82 (+0.18%)Nasdaq22,660.01 +68.86 (+0.30%)Russell 20002,436.48 +1.24 (+0.05%)VIX16.28 +0.16 (+0.99%)Gold3,887.30 +14.10 (+0.36%)PortfolioSign in to access your portfolioSign inTop gainersWOLF Wolfspeed, Inc. 28.60 +6.50 (+29.41%)UNFI United Natural Foods, Inc. 37.62 +5.86 (+18.45%)SMTC Semtech Corporation 71.45 +9.47 (+15.28%)BE Bloom Energy Corporation 84.57 +10.97 (+14.90%)CRWV CoreWeave, Inc. 136.85 +14.33 (+11.70%)Top losersMENS Jyong Biotech Ltd. 39.38 -10.62 (-21.24%)FLY Firefly Aerospace Inc. 29.32 -7.64 (-20.67%)DOCU DocuSign, Inc. 72.09 -10.05 (-12.24%)KVYO Klaviyo, Inc. 27.69 -3.80 (-12.07%)BRZE Braze, Inc. 28.44 -3.78 (-11.73%)Most activeSNAP Snap Inc. 7.71 -0.69 (-8.21%)NVDA NVIDIA Corporation 186.58 +4.70 (+2.59%)OPEN Opendoor Technologies Inc. 7.97 -0.23 (-2.80%)PFE Pfizer Inc. 25.48 +1.63 (+6.83%)INTC Intel Corporation 33.55 -0.92 (-2.67%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNKE NIKE, Inc. 69.73 +0.18 (+0.26%)PFE Pfizer Inc. 25.48 +1.63 (+6.83%)LAC Lithium Americas Corp. 5.71 -0.03 (-0.52%)CRWV CoreWeave, Inc. 136.85 +14.33 (+11.70%)LLY Eli Lilly and Company 763.00 +36.49 (+5.02%)Top economic events