Lululemon Stock Plummets Amid Weak Guidance and Analyst Downgrades

Lululemon Athletica (LULU) shares tumbled 19% in pre-market trading after the company cut its full-year revenue and earnings forecasts, citing sluggish U.S. demand and tariff pressures. The downward revision triggered a wave of analyst downgrades, with firms including Stifel, William Blair, and Evercore moving to neutral ratings.

William Blair's Sharon Zackfia highlighted concerns over delayed U.S. sales recovery and tariff impacts from the de minimis provision repeal. The firm now projects 2026 EPS below 2025 estimates, framing Lululemon as a 'show-me story' until new product launches in 2026.

Stifel's Peter McGough echoed the cautious stance, reflecting broader skepticism about near-term catalysts. The athletic apparel sector faces mounting headwinds as consumer spending patterns shift and trade policies disrupt supply chains.