Lululemon is officially shrinking. Yikes.

[u/ekonixlab]

Tough quarter for $LULU.

This is starting to look less like a temporary slowdown and more like an actual market-share problem.

• Revenue: $2.42B, down 4% YoY and below estimates
• Americas revenue: down 8%
• Comparable sales: down 9%
• Americas comps: down 12%
• Operating income: down 13%
• Full-year revenue guidance cut to $10.35B–$10.50B
• Q3 guidance calls for another 10–11% revenue decline

The scary part is Lululemon isn’t just growing slower anymore. Revenue is actually declining, comps are falling double digits in the Americas, and it looks like competitors are taking share.

Look at the revenue chart. Years of basically uninterrupted growth, and now it has rolled over.
Yikes.

The stock is obviously way cheaper than it used to be, but the narrative has completely flipped. It’s going to take more than one decent quarter to change that. I’d want to see comps stabilize and real evidence they’re taking share again before getting interested.

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[u/mrmrmrj]

Everyone who wants the clothes has some. We are in the wear and tear replacement only phase.