Is Lululemon Stock a Buy as It Sinks to $96 per Share? Here's My Honest Answer.

LULU has collapsed 81% from its December 2023 record high of $511.29 to $96, erasing more than four years of gains. The athletic apparel maker is projecting fiscal 2026 revenue to decline 5-7% with earnings per share falling 27-29%, marking a sharp reversal from years of double-digit growth.

The damage stems from three converging pressures: slowing comparable store sales, weakening women's apparel demand in North America, and direct competition from emerging brands Alo Yoga and Vuori eating into market share. The stock now trades below 10x earnings, a valuation that typically signals deep value.

Despite the discount, analysts warn against treating LULU as a turnaround candidate. The combination of macroeconomic headwinds and intensifying competition in the premium activewear space presents no clear catalyst for near-term recovery. The guidance itself—projecting both top-line contraction and margin compression simultaneously—suggests management sees persistent structural challenges rather than a cyclical dip.

NKE faces similar headwinds in the premium athletic space, though LULU's guidance represents a more acute deterioration.