Lululemon's weakness is structural, and consumers may also be tightening budgets for aspirational purchases across apparel. The same slowing-sales trend showed up at other brands this quarter, and heavy wholesale promotions were flagged on the On and Amer Sports calls, making apparel a tough industry to invest in. x.com 

Lululemon's business has not found its bottom, even after the stock fell nearly 18% after earnings to around $100. Revenue fell 4% to $2.42B, global comparable sales dropped 9% and Americas comps fell 12%. The bigger issue is the outlook, with FY26 revenue now expected to decline 5-7% and EPS guidance cut to $9.48-$9.73. x.com 

Lululemon's 18% premarket drop looks like an overreaction given its improving margins. x.com 

Lululemon's 20% drop does not make it a buy, because its brand is losing ground in its biggest markets and guidance collapsed. Q2 EPS beat on margins, but constant-currency comps fell 10%, with the first declines on record in China and Rest of World, after brand damage from the proxy fight, a Texas PFAS probe and a yoga event backlash. Management cut fiscal 2026 EPS to $9.48-9.73 on sales down 5-7%, and guided Q3 EPS to $0.93-0.98, about 60% below the Street's $2.37. x.com 

If conditions are this tough for On Holding, the rest of the apparel and footwear space, including Lululemon and Nike, is likely faring worse. x.com 

Lululemon offers better risk/reward than Nike if it is not broken, trading below 5x EV/EBITDA versus Nike's 14x. Nike's turnaround through wholesale is very hard for a $50B revenue business facing strong rival brands, less product control, price competition and channel conflict across multiple product lines. Nike may have a better near-term chance of beating estimates and is a more evergreen brand, but Lululemon looks increasingly preferable. x.com  x.com 

Lululemon's problem is its pricing, not a weak consumer. Shoppers are fine but aren't buying its products because the prices no longer make sense, which spells trouble for its margins. x.com 

Lululemon, Nike, Under Armour and On look like cursed value traps because rising competition and unpredictable fashion trends keep eroding their positions. Lululemon has lost its niche dominance as the luxury standard and is now one of a dozen rivals, such as Vuori, Alo and Athleta, chasing the same buyers. Lululemon sits at six-year lows, Nike at 12-year lows, Under Armour at all-time lows and On back at 2022 levels. The products may still be good, but competition is overwhelming. x.com  x.com  … Show more

Lululemon is cheap at around 11x earnings with gross margins above 50%, while many people, including the founder, are pushing for a turnaround. Sales growth is tiny, but the balance sheet is solid and the company makes an interesting acquisition target. The reported collapse of talks with founder Chip Wilson, per WSJ via @DeItaone, looks good for the stock: Wilson may try to take it private or bring in a strategic buyer. x.com  x.com 

Lululemon is probably going lower because sales and margins are imploding while inventory grows, and a new unproven CEO is coming in. Q3 guidance calls for revenue down 10-11%, North America down mid-teens and inventory up low single digits; full-year revenue should fall 5-7% with inventory up mid single digits. Even granting $6 of annualized EPS versus a ~$4 run rate, 12x for an off-trend retailer implies about $70, versus $100 after an 18% drop. x.com  x.com