Lululemon Stock Plunges 10%: Analyzing Q4 Earnings & 2025 Outlook

Lululemon (LULU) Shares Drop 10% Amid Slowing Sales Forecast
Lululemon (NASDAQ: LULU) saw its stock plummet by 10% in pre-market trading on Friday after the company warned of slowing revenue growth for 2025. Despite posting strong Q4 2023 results, investor concerns over its cautious outlook overshadowed earnings gains.

Lululemon Q4 Earnings Highlights

• Revenue Growth: Annual revenue rose 10% year-over-year (YoY) to $10.6 billion, driven by new store openings and same-store sales growth.

• Net Income Surge: Net income jumped 17% YoY to $1.8 billion, reflecting strong margins.

Why Investors Are Worried
While Lululemon’s 2023 performance impressed, its 2025 revenue forecast disappointed analysts. The company projects net revenue between 11.15Band11.15Band11.3B (a 5%-7% increase), falling short of the anticipated 7% growth ($11.3B). This signals a potential slowdown in consumer spending amid macroeconomic uncertainty.

Stock Reaction
Shares dropped 11% to $304.78 pre-market, highlighting Wall Street’s focus on forward guidance over historical results.

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