Lululemon Athletica Inc.'s stock fell to a 52-week low of $95.60, extending a one-year decline of 43.34% and pushing the company's market capitalization to $10.67 billion.
The drop follows second-quarter results that showed revenue slipping 4.3% year-over-year to $2.42 billion, while global comparable sales dropped 9%, including a 12% fall in the Americas. Gross profit margin held at 54.89%, and the stock trades at a P/E ratio of 7.93.
According to InvestingPro data, 14 analysts have revised their earnings estimates downward for the upcoming period, reflecting growing concern over the retailer's trajectory.
On the research desk, analysts are lowering their outlooks. Freedom Broker cut its price target to $115 on a Hold rating. Stifel reduced its target to $100, citing worries about a further downward revision in revenue and earnings expectations. BMO Capital initiated coverage with an underperform rating, pointing to softening demand in both the Americas and China. Wells Fargo flagged potential challenges in the Chinese market, where weak demand and intensifying competition from local brands are weighing on prospects.
The earnings miss comes alongside a leadership transition. Heidi O'Neill was appointed CEO and named to the board, expanding it to 12 members. Outgoing interim co-CEOs Meghan Frank and Andre Maestrini stepped down following the quarter's results.
