Lululemon’s 2025 Slump: A Contrarian Opportunity Amid Athleisure Downturn
Lululemon (LULU) shares have plummeted 50% year-to-date in 2025, marking one of the worst performances in the retail sector. The athleisure pioneer now trades 60% below its all-time highs as macroeconomic pressures and category saturation weigh on growth. North American revenue growth has stalled at 4% year-over-year—a stark contrast to its pandemic-era doubling between 2020-2023.
Yet the selloff may be overdone. While competitors report double-digit declines, Lululemon maintains category leadership with $8 billion in trailing revenue. The current valuation presents a rare entry point for investors betting on a brand resurgence. Market sentiment echoes the crypto winter of 2022—when distressed assets like BTC and ETH later rebounded violently.
