Lululemon Plunges 20% as Q3 Guidance Misses by Over 60%
LULU is trading near its 52-week low of $104.44 (7.6% below the low) on elevated volume (4.6× avg).
Summary
Lululemon's premarket drop deepened to 20% after the company issued Q3 EPS guidance of $0.93-$0.98, far below the $2.40 consensus, and revenue guidance of $2.29B-$2.32B versus $2.53B expected. This follows the second full-year guidance cut reported earlier this morning and the Q2 miss disclosed last night. The magnitude of the Q3 shortfall—over 60% below EPS expectations—signals a sharp deterioration in demand and profitability. The stock is now trading near its 52-week low, and the new CEO Heidi O'Neill takes over on September 8, adding uncertainty. The August jobs report due at 8:30 a.m. ET could further influence market sentiment, but Lululemon's move is company-specific.
At the time of this announcement, LULU was trading at $96.52 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $14.5B. The 52-week trading range was $104.44 to $225.98. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: CNBC TV18.