Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness- inspired accessories and footwear. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; recommerce; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, the People's Republic of China, Canada, Australia, the United Kingdom, South Korea, Germany, New Zealand, Singapore, Japan, France, Ireland, Spain, Malaysia, Sweden, the Netherlands, Norway, and Switzerland. The company was founded in 1998 and is based in Vancouver, Canada.

lululemon athletica inc.

It’s been almost a week since Lululemon’s LULU lackluster Q2 report led to a sharp decline in its stock, hitting a new 52-week low of $162 a share. Although Lululemon was able to exceed Q2 earnings expectations, the leading athletic apparel company slashed its full-year guidance, with a major factor being a $240 million hit from tariffs.
This has raised concerns about the effects of a challenging macro environment on other active-wear apparel companies, including Nike NKE, which is scheduled to report results for its fiscal first quarter on Tuesday, September 30.
Like Lululemon, Nike's stock has been submerged in volatility, climbing off a one-year low of $52 a share but still 19% from a 52-week peak of $90. Furthermore, NKE is more than 50% below its all-time high of $167, with LULU trading 67% beneath its record peaks of $511.
Despite their grizzly stock performances in recent years, let’s see if now is an opportune time to invest in either of these leading apparel retailers for a sharp rebound.
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Stale Product Lines & Lululemon’s Surprising Competitors
Offering high-quality activewear and footwear, both brands compete directly in the athletic apparel market, but Lululemon has faced increased competition from unlikely competitors that appear to be disrupting its core business. Simarlar to Nike, Lululemon’s management has admitted that its product lines have become stale and is racing to fast-track new designs.
Centered around its yoga-inspired athleisure gear, Lululemon’s same-store sales fell 4% during Q2 in its core North American market. Notably, several analysts and CNBC contributor Jim Cramer pointed to surprising scenarios/competitors for the disruption, such as more affordable jogger brands offered by Costco COST and The Gap GAP.
While it wasn’t enough to offset domestic concerns, Lululemon's international sales surged last quarter, with China segment sales up 25% and collective markets in the rest of the world up 19%. Still, Lululemon is being impacted by the removal of the de minimis exemption, which previously allowed smaller international shipments to bypass tariff duties. Raising more fears regarding margin pressures and its stale product line, Lululemon’s inventory ballooned 21% year over year to $1.7 billion.
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Nike’s Leadership Overhaul & Strategic Pivot
Facing a growing number of competitors outside of Adidas ADDYY, Nike has undergone a leadership change with long-term executive Elliott Hill taking over as President and CEO in 2024. Having more than 30 years of experience with Nike, Hill has refocused the iconic sports brand on its core strengths after a tech-centric strategy misfired.
Pouring resources into digital ads and performance marketing, Nike still experienced a drop-off in digital sales and alienated partners like Foot Locker and Macy’s M in a bid to boost its direct-to-consumer (DTC) reach on Nike.com. It’s noteworthy that Nike’s inventory remained flat during its most recent fiscal fourth quarter, and expects to have a “clean” inventory position by the first half of its current fiscal year 2026.
Aiming to rebuild relationships with third-party vendors, Hill has refocused Nike on wholesale distribution, product innovation, and storytelling campaigns. Plus, Nike has announced plans to shift manufacturing away from China, aiming to reduce exposure to tariffs that could cost up to $1 billion. Stating that the brunt of the tariff impact may be behind it, Nike’s leadership has implemented a four-pronged plan that also includes negotiating with suppliers and retailers to share the cost burden, while cutting corporate costs and selectively raising prices in the U.S.
Nike is better suited to handle Tarriff headwinds
While Lululemon’s immense profitability has wowed investors at times, it doesn’t take Captain Obvious to realize that Nike may be better suited to handle tariff headwinds. Even with Nike facing higher tariff costs, the company is projected to bring in over $40 billion in annual sales for the foreseeable future, compared to Lululemon’s forecast of $11 billion or more.
That said, Nike is generally better positioned to handle tariffs than Lululemon thanks to its supply chain maturity as well. Having a deeper global infrastructure, Nike has diversified manufacturing from multiple countries outside of China, including Vietnam, Indonesia, and India. Lululemon, on the other hand, is more vulnerable to sudden policy shifts and cost spikes as it relies heavily on Canadian and Vietnamese factories.
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Conclusion & Final Thoughts
Being further along in its turnaround strategy, a rebound looks more likely for Nike stock, as there could still be more short-term weakness ahead for Lululemon shares. Of course, Lululemon will need to overcome tariff uncertainties, but one thing it can learn from Nike as it undergoes an apparel renovation of its own, is that tech is not always a substitute for product relevance, retail relationships, or emotional brand storytelling that resonates with consumers.
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Nike vs. Lululemon: Is Either Apparel Stock Due for a Sharp Rebound?

Below is Validea's guru fundamental report for LULULEMON ATHLETICA INC (LULU). Of the 22 guru strategies we follow, LULU rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
LULULEMON ATHLETICA INC (LULU) is a large-cap value stock in the Apparel/Accessories industry. The rating using this strategy is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of LULULEMON ATHLETICA INC
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About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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Peter Lynch Detailed Fundamental Analysis - LULU

Key Points
Strong growth in free cash flow could fuel this top e-commerce stock over the next several years.
This e-commerce giant is making it sweet for its target population to start buying online.
This footwear stock is growing rapidly and trading at a discount.
Building wealth in the stock market is not difficult. Stocks can be volatile in the near term, but what matters is growth in a company's revenue and profits over a long period of time.
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1. Shopify still going strong
John Ballard (Shopify): Shopify provides a user-friendly platform to set up an online storefront and connect with millions of consumers. With the global e-commerce market valued at $6 trillion and still only comprising around 20% of retail spending, according to eMarketer, Shopify can grow for a long time and deliver market-beating returns to shareholders.
Shopify continues to deliver strong financial results that point to the opportunity ahead. It reported a stellar 31% year-over-year increase in revenue to reach $2.7 billion in its second quarter. Merchants access Shopify's platform through subscriptions that provide recurring revenue for the company, but more than $2 billion of its quarterly revenue came from payment processing and other services that make it easy for merchants to manage their businesses.
The stock's high price-to-sales multiple shows that investors are expecting a lot more revenue growth from the company. But Shopify could also see explosive growth in profits. The company's free cash flow continues to grow faster than the top line, increasing by 31% year over year to $422 million in Q2.
Shopify's free cash flow margin has been trending up the past few years, currently at 16% as of Q2 2025. The company should see rising margins as it rolls out artificial intelligence (AI) tools that increase personalization for consumers. This should drive more purchases across Shopify's merchant base, driving higher gross merchandise volume and revenue.
The consensus analyst estimate on Wall Street calls for Shopify's revenue and free cash flow to roughly double over the next three years. That would put its revenue and free cash flow at more than $16 billion and $3 billion, respectively, in 2027. Shopify's AI-driven growth strategy makes it a smart investment for investors looking to profit off the growing e-commerce market. The stock is up 5,400% since its initial public offering 10 years ago and should keep growing value for a long time.
2. Latin America is shifting to digital e-commerce and banking
Jennifer Saibil (MercadoLibre): MercadoLibre is an e-commerce giant in Latin America, and it continues to expand its platform, gain new customers, and increase its revenue. It's also crushing the market.
It's easy to see why. MercadoLibre is constantly upgrading its platform to offer better value, faster delivery, and new services that are changing the financial landscape in its region.
For example, management is honing in on its value proposition in free delivery, and it lowered the bar for free delivery in Brazil last quarter, as well as reduced shipping costs for suppliers on its fulfillment network. That generated accelerated growth in items sold in the second quarter, which has remained above 30% for eight straight quarters. Total gross merchandise volume increased 37% year over year (currency neutral), and total items sold were up 31%. Unique active buyers increased 25% year over year to hit more than 70 million.
Things are going equally splendidly on the fintech side of things. MercadoLibre has released a full financial services app that complements its e-commerce business, and it's working on opening full digital banks in several of its operating countries, starting with Mexico.
Monthly active user (MAU) growth stayed at 30% in the second quarter, and it was the seventh consecutive quarter of MAU growth at 30% or higher. Assets under management more than doubled, and the total credit portfolio was up 91% more than last year.
On top of that, it operates in a region that's underpenetrated and underbanked. E-commerce penetration is about a decade behind the U.S., and according to the World Economic Forum, 70% of the population is either unbanked or underbanked. That gives it tremendous organic opportunity, and it's working on making the shift happen.
MercadoLibre is still a relatively small company, but it's growing quickly, and it has years of growth ahead.
3. A growth stock on the run
Jeremy Bowman (On Holding): The apparel and footwear sector has been challenging over the last year as a combination of weak discretionary spending and pressure from tariffs have weighed on most sector operators, but one company has stood head-and-shoulders above the rest.
That's On Holding, the Switzerland-based based footwear and apparel company that's best known for its running shoes. On has gained a following thanks to its Cloudtec cushioning, a patented design that's both lightweight and provides for a soft landing.
The numbers illustrate the growing popularity of the brand as it reported 32% revenue growth, or 38.2% in its second-quarter report, to 749.2 million Swiss Francs (CHF).
It also has attractive margins, with gross profit margin improving to 61.5% in the quarter, which is very strong for any footwear or apparel company. And it reported operating income of 92.8 million CHF in the second quarter, or an operating margin of 12.4%.
The company is also expanding beyond running into categories like tennis, with the help of Roger Federer (who is an investor in the company), as well as cross training, casual wear, and apparel.
It's also expanding in Asia, looking to build a formidable presence in China, a market that's been kind to similar brands like Lululemon and Nike.
Right now also looks like a good time to buy On Holding stock because it's pulled back by 29% from its peak earlier this year. While the stock still trades at a premium compared to its peers, that looks deserved considering its superior growth rate. If it can continue to deliver solid growth, the stock should move higher over the coming years.
Should you invest $1,000 in Shopify right now?
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Jennifer Saibil has positions in MercadoLibre and On Holding. Jeremy Bowman has positions in MercadoLibre, Nike, and Shopify. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc., MercadoLibre, Nike, and Shopify. The Motley Fool recommends On Holding. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Brilliant Growth Stocks to Buy Right Now

Key Points
Lululemon slashed its full-year outlook due to the impact of U.S. tariffs.
The removal of the de minimis exception will hit the e-commerce business.
While earnings will decline this year, Lululemon stock hasn't been this cheap in a very long time.
Athletic apparel retailer Lululemon (NASDAQ: LULU) was already facing multiple issues before U.S. tariff policy was turned on its head by the Trump administration. The company has been slow to innovate, and its stale product lines have opened the door to competition on multiple fronts. At the same time, younger consumers are moving away from the tight leggings that have defined Lululemon's brand.
The company's turnaround was going to be challenging no matter what, and now tariffs have increased the difficulty even further. Lululemon's second-quarter report was bad enough to send the stock down nearly 20% on Friday morning. Tariffs are turning into a huge headache for the company at the worst possible time.
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Slashing its outlook as costs rise
Lululemon grew revenue by 7% year over year in Q2, but that growth was driven by new stores and success in international markets. Comparable sales in the Americas were down 4%. Gross margin dipped by 1.1 percentage points to 58.5% in the quarter, while earnings per share (EPS) declined slightly.
The rest of the year is going to be a slog. Lululemon cut its 2025 outlook due to trouble in its U.S. business. Total revenue is now expected to grow by just 2% to 4%, and EPS should come in between $12.77 and $12.97. Previously, the company had guided for 5% to 7% revenue growth and EPS between $14.58 and $14.78.
Tariffs are largely to blame for Lululemon's weak outlook. Most of Lululemon's products come from countries with tariff rates above the 10% baseline rate that was in force earlier this year. Products from Vietnam, for example, are now subject to a 20% tariff rate after a trade deal was reached over the summer.
The removal of the de minimis exception, which allowed small shipments to enter the U.S. without any duties, is also set to have a significant negative impact on Lululemon's operations. Most of Lululemon's sales to U.S. e-commerce customers are currently fulfilled from Canadian distribution centers, and many of those orders previously qualified for the de minimis exception. With the exception now gone, order fulfillment costs are set to rise.
Lululemon has some levers to pull that will partially mitigate these higher costs, including negotiating with vendors and raising prices. However, there's only so much the retailer can do. Lululemon expects tariffs and the removal of the de minimis exception to reduce its gross profit for the full year by around $240 million. For perspective, the company generated a gross profit of roughly $6.3 billion in 2024.
That hit to gross profit will flow down the income statement and significantly impact EPS. Consumer behavior adds in even more uncertainty. With signs of an economic slowdown piling up, demand for high-end athletic apparel could take a hit. And how Lululemon's customers respond to any price increases is hard to predict.
Patient investors could benefit
Lululemon stock had already been tumbling in 2025 prior to the Q2 earnings report. As of Friday morning, the stock was down 56% year to date. The company is valued at just over $20 billion, or less than twice the company's outlook for full-year sales. Based on trailing-12-month sales, Lululemon stock hasn't been this cheap since the depths of the financial crisis more than 15 years ago.
While Lululemon stock is likely to remain under pressure for now, the company's strong brand and its strategy to freshen up its product lines could drive stronger growth down the road. Tariffs are going to take a bite out of earnings as long as they're in force, and a comeback is going to be difficult to pull off until the economic picture improves. For investors with some patience, though, Lululemon could be a great investment at the current beaten-down price.
Should you invest $1,000 in Lululemon Athletica Inc. right now?
Before you buy stock in Lululemon Athletica Inc., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lululemon Athletica Inc. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $678,148!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,052,193!*
Now, it’s worth noting Stock Advisor’s total average return is 1,065% — a market-crushing outperformance compared to 186% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tariffs Are a Big Problem for Lululemon Stock

The S&P 500 Index ($SPX) (SPY) on Friday fell -0.32%, the Dow Jones Industrials Index ($DOWI) (DIA) fell -0.48%, and the Nasdaq 100 Index ($IUXX) (QQQ) rose +0.08%. September E-mini S&P futures (ESU25) fell -0.35%, and September E-mini Nasdaq futures (NQU25) rose +0.04%.
Stocks on Friday initially rallied after the weak US unemployment report, which solidified market expectations for at least two Fed rate cuts by year-end. However, stocks then turned lower as market sentiment turned negative on concern about weaker US corporate earnings if the US economy is headed towards a recession.
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Friday’s Aug payroll report of +22,000 was weaker than the consensus of +75,000. Over the past three months, payrolls have shown an average monthly rise of only +29,000. July payrolls were revised slightly higher to +79,000 from +73,000, but June was revised lower to a decline of -13,000. Aug private payrolls rose by only +38,000, while manufacturing payrolls fell by -12,000. The Aug unemployment rate rose by +0.1 point to a 3.75-year high of 4.3%, up from +4.2% in July, which was in line with market expectations.
Aug average hourly earnings rose by +0.3% m/m, which was in line with market expectations. In a positive inflation development, the Aug average hourly earnings report eased to +3.7% y/y from +3.9% in July and was slightly weaker than expectations of +3.8%.
Stocks received underlying support as the 10-year T-note yield fell -7 bp on the US unemployment report. The markets are now pricing in a 9% chance of a 50 bp rate cut at the upcoming FOMC meeting on Sep 16-17, versus the previous expectations of a zero chance of that 50 bp rate cut. After the fully expected -25 bp rate cut at the Sep 16-17 meeting, the markets are now discounting an 84% chance of a second -25 bp rate cut at the Oct 28-29 meeting, up from a 54% chance as of late Thursday. The markets are now pricing in an overall -73 bp rate cut in the federal funds rate by year-end to 3.65% from the current 4.38% rate.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Overseas stock markets on Friday closed mixed. The Euro Stoxx 50 closed down -0.53%. China’s Shanghai Composite closed up +1.24%, snapping a 3-session losing streak. Japan’s Nikkei Stock 225 closed up +1.03%.
Interest Rates
December 10-year T-notes (ZNZ5) rose by +15.5 ticks. The 10-year T-note yield fell by -7.1 bp to 4.090% and posted a 5-month low. T-note prices rallied on the weak US unemployment report and the increased chances for Fed easing. T-note prices also saw support from Friday’s -1.6 bp decline to 2.374% in the 10-year inflation expectations rate, driven by the weak unemployment report and the -2.5% plunge in crude oil prices.
The Treasury market on Friday focused on the weak US unemployment and ignored, for the time being, concerns about Fed independence sparked by President Trump’s attempt to fire Fed Governor Cook and by Stephen Miran’s intention to be a Fed Governor while still technically holding his White House job on the Council of Economic Advisors.
European government bond yields ended lower. The 10-year German bund yield fell -5.7 bp to 2.662%. The 10-year UK gilt yield fell -7.5 bp to 4.646%.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven stocks on Friday closed mixed, with three stocks closing higher and four stocks closing lower. Tesla (TSLA) led the pack with a +3.6% gain after announcing a pay deal for Elon Musk potentially worth as much as $1 trillion to entice him to show up for work at Tesla and meet aggressive targets. Apple (AAPL) closed slightly lower despite news that its annual fiscal sales in India hit a record of nearly $9 billion. Nvidia (NVDA) fell -2.7% on news that Broadcom is encroaching on its AI chip territory. Microsoft (MSFT) fell -2.6%, and Amazon (AMZN) fell -1.4%.
Broadcom (AVGO) rallied +9.4% on an agreement with OpenAI to design and produce a new AI chip, seeking to displace Nvidia’s stronghold in AI chips. Chip stocks were strong in general, with
Micron (MU) up +5.8% and gains of more than +3% in ASML (ASML), KLA-Tencor (KLAC), and Align Technology (ALGN).
Energy stocks fell due to Friday’s -2.5% sell-off in Oct WTI crude oil on reports that Saudi Arabia wants OPEC+ to speed up the next oil production boost. ConocoPhillips (COP), Diamondback Energy (FANG), Exxon Mobil (XOM), Chevron (CVX), and Devon Energy (DVN) all closed lower by more than -2%.
Crypto stocks closed mixed, even though Bitcoin (^BTCUSD) rallied +1%. Coinbase (COIN) fell -2.5%, but Strategy (MSTR) rallied +2.5%. Riot Platforms (RIOT) and MARA Holdings (MARA) closed up by more than +0.5%.
Homebuilders rallied on Friday’s continued decline in the 10-year T-note yield, which put downward pressure on mortgage rates. DR Horton (DHI), Lennar (LEN), and PulteGroup (PHM) all closed up by more than +2%, while Toll Brothers (TOL) closed up +1.4%.
Lululemon Athletica (LULU) fell by -18.6% after reducing its guidance due to a weak consumer environment and tariffs.
Earnings Reports(9/8/2025)
Casey’s General Stores (CASY).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Fade on Economic Concerns after Weak US Unemployment Report

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in lululemon athletica inc (Symbol: LULU), where a total of 505,111 contracts have traded so far, representing approximately 50.5 million underlying shares. That amounts to about 1237.1% of LULU's average daily trading volume over the past month of 4.1 million shares. Particularly high volume was seen for the $165 strike put option expiring September 05, 2025, with 24,794 contracts trading so far today, representing approximately 2.5 million underlying shares of LULU. Below is a chart showing LULU's trailing twelve month trading history, with the $165 strike highlighted in orange:
Broadcom Inc (Symbol: AVGO) options are showing a volume of 1.3 million contracts thus far today. That number of contracts represents approximately 127.1 million underlying shares, working out to a sizeable 690.3% of AVGO's average daily trading volume over the past month, of 18.4 million shares. Particularly high volume was seen for the $340 strike call option expiring September 05, 2025, with 58,698 contracts trading so far today, representing approximately 5.9 million underlying shares of AVGO. Below is a chart showing AVGO's trailing twelve month trading history, with the $340 strike highlighted in orange:
And Unity Software Inc (Symbol: U) saw options trading volume of 269,117 contracts, representing approximately 26.9 million underlying shares or approximately 226.3% of U's average daily trading volume over the past month, of 11.9 million shares. Especially high volume was seen for the $40.50 strike call option expiring September 05, 2025, with 30,706 contracts trading so far today, representing approximately 3.1 million underlying shares of U. Below is a chart showing U's trailing twelve month trading history, with the $40.50 strike highlighted in orange:
For the various different available expirations for LULU options, AVGO options, or U options, visit StockOptionsChannel.com.
Also see:
Funds Holding FIHL
Top Ten Hedge Funds Holding LGDX
DLBL shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: LULU, AVGO, U

The T. Rowe Price U.S. Equity Research ETF is seeing unusually high volume in afternoon trading Friday, with over 728,000 shares traded versus three month average volume of about 135,000. Shares of TSPA were off about 0.5% on the day.
Components of that ETF with the highest volume on Friday were Nvidia, trading off about 2.8% with over 172.3 million shares changing hands so far this session, and Tesla, up about 3.9% on volume of over 84.2 million shares. Broadcom is the component faring the best Friday, higher by about 9.9% on the day, while Lululemon Athletica is lagging other components of the T. Rowe Price U.S. Equity Research ETF, trading lower by about 18%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday's ETF with Unusual Volume: TSPA

The S&P 500 Index ($SPX) (SPY) today is down -0.56%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.58%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.25%. September E-mini S&P futures (ESU25) are down -0.49%, and September E-mini Nasdaq futures (NQU25) are down -0.20%.
Stocks today initially rallied after the weak US unemployment report, which solidified market expectations for at least two Fed rate cuts by year-end. However, stocks then turned lower as market sentiment turned negative on concern about weaker US corporate earnings if the US economy is headed towards a recession.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s Aug payroll report of +22,000 was weaker than the consensus of +75,000. Over the past three months, payrolls have shown an average monthly rise of only +29,000. July payrolls were revised slightly higher to +79,000 from +73,000, but June was revised lower to a decline of -13,000. Aug private payrolls rose by only +38,000 while manufacturing payrolls fell by -12,000. The Aug unemployment rate rose by +0.1 point to a 3.75-year high of 4.3%, up from +4.2% in July, which was in line with market expectations.
Aug average hourly earnings rose by +0.3% m/m, which was in line with market expectations. In a positive inflation development, the Aug average hourly earnings report eased to +3.7% y/y from +3.9% in July and was slightly weaker than expectations of +3.8%.
Stocks received underlying support today as the 10-year T-note yield fell -9 bp on the US unemployment report. The markets are now pricing in a 14% chance of a 50 bp rate cut at the upcoming FOMC meeting on Sep 16-17, versus the previous expectations of a zero chance of that 50 bp rate cut. The markets are now discounting a 93% chance of a second -25 bp rate cut at the Oct 28-29 meeting, up from a 54% chance as of late Thursday. The markets are now pricing in an overall -75 bp rate cut in the federal funds rate by year-end to 3.63% from the current 4.38% rate.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.80%. China’s Shanghai Composite closed up +1.24%, snapping a 3-session losing streak. Japan’s Nikkei Stock 225 closed up +1.03%.
Interest Rates
December 10-year T-notes (ZNZ5) are up +22.5 ticks. The 10-year T-note yield is down -8.8 bp at 4.072% and posted a 5-month low. T-note prices rallied on the weak US unemployment report and the increased chances for Fed easing. T-note prices are also seeing support from today’s -2.9 bp decline to 2.361% in the 10-year inflation expectations rate, driven by the weak unemployment report and today’s -3% plunge in crude oil prices.
T-note prices today are being driven by the weaker labor market and are ignoring, for the time being, concerns about Fed independence sparked by President Trump’s attempt to fire Fed Governor Cook and by Stephen Miran’s intention to be a Fed Governor while still technically holding his White House job on the Council of Economic Advisors.
European government bond yields are lower. The 10-year German bund yield is down -6.1 bp to 2.659%. 10-year UK gilt yield is down -7.0 bp at 4.650%.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven stocks today are mixed, with four stocks trading higher but three trading lower. Tesla (TSLA) is leading the pack with a +2.8% gain after announcing a pay deal for Elon Musk potentially worth as much as $1 trillion to entice him to show up for work at Tesla and meet aggressive targets. Apple (AAPL) is trading slightly higher after news that its annual fiscal sales in India hit a record of nearly $9 billion. Nvidia (NVDA) is down more than -3% on news that Broadcom is encroaching on its AI chip territory. Microsoft (MSFT) is down more than -2%, and Amazon (AMZN) is down more than -1%.
Broadcom (AVGO) is up more than +9% on an agreement with OpenAI to design and produce a new AI chip, seeking to displace Nvidia’s stronghold. Chip stocks are strong in general today, with gains of more than +3% in ON Semiconductor (ON), Microchip Technology (MCHP), ASML (ASML), and Micron (MU).
Energy stocks are trading lower today due to the -3% sell-off in Oct WTI crude oil on reports that Saudi Arabia wants OPEC+ to speed up the next oil production boost. Diamondback Energy, Devon Energy (DVN), Occidental Petroleum (OXY), ConocoPhillips (COP), and Baker Hughes (BKR) are all down more than -2%.
Crypto stocks are mostly lower today on technical pressure after Bitcoin (^BTCUSD) gave up an early rally and turned mixed. Coinbase (COIN) is down more than -3%, Riot Platforms (RIOT) is down more than -2%, and MARA Holdings (MARA) is down more than -1%.
Homebuilders are trading higher on today’s sharp decline in the 10-year T-note yield, which put downward pressure on mortgage rates. Lennar (LEN) and DR Horton (DHI) are up more than +3%, while PulteGroup (PHM) is up more than +2%, and Toll Brothers (TOL) is up more than +1%.
Lululemon Athletica (LULU) is down more than -18% after reducing its guidance due to a weak consumer environment and tariffs.
Earnings Reports(9/5/2025)
ABM Industries Inc (ABM), C&F Financial Corp (CFFI), Ermenegildo Zegna NV (ZGN), KalVista Pharmaceuticals Inc (KALV), Louisiana-Pacific Corp (LPX), National Beverage Corp (FIZZ), Pathward Financial Inc (CASH), Pro-Dex Inc (PDEX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Turn Lower on Economic Concerns after Weak US Unemployment Report

lululemon athletica inc. LULU reported second-quarter fiscal 2025 results, wherein earnings per share (EPS) beat the Zacks Consensus Estimate, while revenues lagged the same. The company’s top and bottom lines declined year over year, driven by softness in the Americas. Additionally, soft margins weighed on the bottom line.
lululemon’s fiscal second-quarter earnings per share (EPS) of $3.10 declined 1.6% compared with $3.15 in the prior-year quarter. However, the bottom line surpassed the Zacks Consensus Estimate of $2.53.
Shares of lululemon tumbled 16.5% in the after-hours trading session yesterday, following a weak fiscal second-quarter fiscal 2025 performance and a downbeat outlook for the third quarter and fiscal 2025. Investor sentiment was further rattled by management’s warning on rising import tariffs, retaliatory measures and the removal of the de minimis exemption, signaling that LULU faces a challenging road ahead. The Zacks Rank #3 (Hold) company has lost 33.1% in the past three months compared with a 5.4% decline for the Textile - Apparel industry.
Image Source: Zacks Investment Research
LULU’s Q2 Earnings Overview
The Vancouver, Canada-based company’s quarterly revenues rose 7% year over year to $2.5 billion and missed the Zacks Consensus Estimate of $2.84 billion. On a constant-dollar basis, net revenues improved 6% year over year in the fiscal second quarter. Net revenues grew 1% in the Americas on both reported and constant-dollar basis, and 22% internationally (up 20% on a constant-dollar basis).
Total comparable sales (comps) rose 1% year over year. Comps in the Americas declined 4% on a reported basis and 3% in constant dollars. Internationally, comps increased 15% and rose 13% on a constant-dollar basis. Our model predicted comps growth of 0.6% for the fiscal second quarter.
Within the Americas segment, revenues increased 1% year over year in Canada on both a reported and constant-currency basis, and were flat in the United States. In the International segment, revenues rose 25% in Mainland China (24% in constant currency) and 19% in the Rest of the World (15% in constant currency). Comps improved 16% in Mainland China and 9% in the Rest of the World in the fiscal second quarter.
In the store channel, the company’s total sales increased 3% on a constant-dollar basis. Digital revenues improved 9% year over year, contributing $1 billion, or 39%, to the total revenues.
lululemon athletica inc. Price, Consensus and EPS Surprise
lululemon athletica inc. price-consensus-eps-surprise-chart | lululemon athletica inc. Quote
The gross profit improved 5% year over year to $1.48 billion. The gross margin contracted 110 basis points (bps) to 58.5%, primarily affected by an 80-basis-point (bps) decline in the product margin, led by increased markdowns and tariff impacts. Notably, markdowns increased 60 bps, well above the company’s expectations of 20-40 bps, while fixed cost deleverage added 40 bps of pressure. These headwinds were partly offset by a 10-bps benefit from favorable foreign exchange. We expected the gross margin to contract 200 bps year over year to 57.6% for the fiscal second quarter.
However, management noted that gross margin in the quarter was stronger than its guidance of a 200-210 bps decline, fueled by favorable product mix, lower ocean freight costs, disciplined expense management and smaller-than-expected tariff impacts due to timing. Additionally, a reversal of stock-based compensation accruals contributed further relief.
SG&A expenses of $951.7 million increased 9.1% from the year-ago quarter. SG&A expenses, as a percentage of net revenues, of 37.7% rose 90 bps from 36.8% in the prior-year quarter. The increase in SG&A expense rate was favorable versus the company’s guidance of a 170-190 bps increase. The better-than-expected SG&A rate was driven by the stock-based compensation accrual reversal.
Our model predicted SG&A expenses to rise 12.6% year over year for the fiscal second quarter, with a 190-bps increase in the SG&A expense rate to 38.7%.
The operating income declined 3% year over year to $523.8 million in the fiscal second quarter. The operating margin of 20.7% contracted 210 bps year over year. Our model predicted a 10.9% year-over-year decline in adjusted operating income. We estimated the operating margin to decline 380 bps year over year to 19%.
Snapshot of lululemon’s Store Plans
In second-quarter fiscal 2025, LULU opened 14 net new stores, including 15 store openings and one closure. Additionally, the company completed six optimizations. As of Aug. 3, 2025, it operated 784 stores.
In the third quarter of fiscal 2025, the company expects to open 14 net new company-operated stores and complete 18 store optimizations. For fiscal 2025, lululemon reiterated its guidance of 40-45 net new company-operated stores, anticipating store openings at the higher end of the view. It expects to complete 35 co-located optimizations compared with 40 optimizations mentioned earlier.
LULU expects overall square footage growth in the low-double digits for fiscal 2025. Store openings in fiscal 2025 are expected to include 15 stores in the Americas, with nearly half of this planned for Mexico. The rest of the store openings in fiscal 2025 are expected to occur in the international markets, primarily in China.
LULU’s Other Financial Details
lululemon exited second-quarter fiscal 2025 with cash and cash equivalents of $1.6 billion. The company had $393.2 million of capacity under its committed revolving credit facility and stockholders’ equity of $4.4 billion. Its inventories rose 21% year over year to $1.7 billion, with inventory units improving 13%. The capital expenditure was $178 million in the fiscal second quarter.
In the fiscal third quarter, the company anticipates dollar inventory to increase in the low double-digits and inventory per unit to increase in the low 20s, driven by higher tariffs and adverse currency rates. The company expects inventory growth for the rest of the fiscal year to follow a similar pattern.
In the fiscal second quarter, lululemon repurchased 1.13 million shares at an average price of $247. As of Aug. 3, 2025, LULU had $860 million remaining under its current $1-billion share repurchase authorization.
lululemon’s Targets for Q3 & FY25
LULU lowered its revenue and EPS guidance for fiscal 2025 due to the expectations of increased tariff-related costs and the removal of the de minimis exemption.
For fiscal 2025, LULU anticipates net revenues of $10.85-$11 billion compared with the $11.15-$11.3 billion stated earlier. This indicates 2-4% year-over-year growth versus the previously mentioned growth rate of 5-7%. Excluding the 53rd week in 2024, revenues are expected to rise 4-6% compared with 7-8% growth mentioned earlier.
On a segmental basis, the company’s guidance assumes revenues in the Americas to be flat to down 1%, including a 1-2% decline in the United States and nearly flat revenues in Canada. On the international front, revenues are expected to increase 20-25% in Mainland China and 20% in the Rest of the World.
lululemon expects a 300-bps year-over-year decline in the gross margin compared with the previously mentioned 110-bps decline. The variance from the prior guidance is mainly due to an additional 190 bps of deleverage, led by increased tariffs, including the removal of the de minimis exemption, offset by its cost mitigation efforts. Additionally, the company anticipated markdowns of 50 bps compared with the prior stated 10-20 bps, reflecting higher seasonal clearance.
The company also provided additional details on tariff-related expenses, which now reflect two key components: higher reciprocal rates and the removal of the de minimis exemption. The company’s earlier guidance assumed mitigated impacts of roughly 40 bps for fiscal 2025, based on 10% incremental tariffs across most sourcing countries and 30% on China.
However, with tariff rates trending higher and the de minimis exemption now eliminated, the company projects a 220-bps impact on the gross margin for fiscal 2025 (or nearly $240 million of mitigated impacts). Of this, about 170 bps of impact stemmed directly from the de minimis change. Previously, the company’s Canadian distribution infrastructure allowed it to ship e-commerce orders under $800 to U.S. customers, qualifying for the exemption and generating meaningful duty savings. That advantage has now been removed, significantly pressuring margins.
Additionally, the company noted that in fiscal 2025, it will only realize half a year of mitigation strategies, limiting the offset. By fiscal 2026, while the company will not fully recover the incremental de minimis costs, it expects to benefit from a full year of mitigation measures, leading to an estimated $320-million net impact on the operating margin tied to both higher tariffs and the exemption removal. This outlook underscores the near-term headwinds but also highlights its proactive approach to managing through evolving trade dynamics.
The SG&A expense rate is expected to rise 80-90 bps year over year for fiscal 2025, above the prior mentioned 50 bps. The increase in deleverage is led by softer top-line projections, currency headwinds and ongoing investments in its Power of Three x2 plan despite several enterprise-wide cost savings initiatives in place. Throughout fiscal 2025, the company will continue to allocate resources to support market growth, advance international expansion and strengthen technology capabilities.
LULU expects the fiscal 2025 operating margin to contract 390 bps year over year. The company projects an EPS of $12.77-$12.97, suggesting an increase from the $14.64 reported in fiscal 2024. The revised EPS view marks a decline from $14.95-$14.78 projected earlier. The company anticipates an effective tax rate of 30% for fiscal 2025. lululemon expects a capital expenditure of $700-$720 million for fiscal 2025 compared with $740-$760 mentioned earlier.
For the third quarter of fiscal 2025, management anticipates net revenues of $2.47-$2.5 billion, indicating 3-4% year-over-year growth. The company expects a 410-bps year-over-year decline in the gross margin due to higher tariff rates and the removal of the de minimis exemption, along with fixed cost deleverage and continued investment in its multi-year distribution center project. The tariff and de minimis impacts are expected to be 230 bps. Additionally, the company expects an 80-bps year-over-year increase in markdowns, driven by higher seasonal clearance.
SG&A, as a percentage of sales, is expected to deleverage 150 bps year over year, driven by higher foundational investments, including related depreciation and strategic initiatives to enhance brand awareness and support growth. The operating margin for the fiscal third quarter is expected to decline 560 bps year over year, including a 230-bps impact of tariffs and de minimis.
EPS for the fiscal third quarter is expected to be $2.18-$2.23, whereas it reported EPS of $2.87 in the prior-year quarter. LULU estimates an effective tax rate of 30.5% for the fiscal third quarter.
Solid Picks in LULU’s Broader Industry
We have highlighted three better-ranked stocks from the same industry, namely Ralph Lauren Corporation RL, Guess?, Inc. GES and Hanesbrands Inc. HBI.
Ralph Lauren is a major designer, marketer and distributor of premium lifestyle products in North America, Europe, Asia, and internationally. RL flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ralph Lauren’s fiscal 2025 sales and earnings indicates growth of 6% and 19.8%, respectively, from the year-ago period’s reported figures. RL has a trailing four-quarter earnings surprise of 8.5%, on average.
Guess designs, markets, distributes and licenses casual apparel and accessories for men, women and children as per the American lifestyle and European fashion sensibilities. GES sports a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Guess’ current fiscal-year sales indicates growth of 7% from the year-ago period’s reported figure. The consensus estimate for GES earnings suggests a year-over-year decline of 18.4%. GES has a trailing four-quarter earnings surprise of 26.7%, on average.
Hanesbrands engages in the design, manufacture, sourcing and sale of apparel essentials for men, women and children in the United States and internationally. HBI currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Hanesbrands’ current fiscal-year sales indicates a decline of 11.3% from the year-ago period’s reported figure. The consensus estimate for HBI earnings suggests a year-over-year surge of 65%. HBI has a trailing four-quarter negative earnings surprise of 56.1%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

lululemon Q2 Earnings Beat Estimates, Stock Tumbles on Downbeat View

The S&P 500 Index ($SPX) (SPY) today is down -0.40%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.49%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.14%.
Stocks are lower after today’s weak US payroll report, which solidified market expectations for at least two Fed rate cuts by year-end. However, the unemployment report also suggested slower US economic growth, which would be negative for US corporate earnings.
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Today’s Aug payroll report of +22,000 was weaker than the consensus of +75,000. Over the past three months, payrolls have shown an average monthly rise of only +29,000. July payrolls were revised slightly higher to +79,000 from +73,000, but June was revised lower to a decline of -13,000. Aug private payrolls rose by only +38,000 while manufacturing payrolls fell by -12,000. The Aug unemployment rate rose by +0.1 point to a 3.75-year high of 4.3%, up from +4.2% in July, which was in line with market expectations.
Aug average hourly earnings rose by +0.3% m/m, which was in line with market expectations. In a positive inflation development, the Aug average hourly earnings report eased to +3.7% y/y from +3.9% in July and was slightly weaker than expectations of +3.8%.
The US Bureau of Labor Statistics released the unemployment report on time, but announced before the report that it was experiencing technical difficulties that might cause some data to be delayed.
Stocks received support today as the 10-year T-note yield fell -8 bp on the US unemployment report. The markets are now pricing in a 17% chance of a 50 bp rate cut at the upcoming FOMC meeting on Sep 16-17, versus the previous expectations of a zero chance of that 50 bp rate cut. The markets are now discounting a 96% chance of a second -25 bp rate cut at the Oct 28-29 meeting, up from a 54% chance as of late Thursday. The markets are now pricing in an overall -75 bp rate cut in the federal funds rate by year-end to 3.63% from the current 4.38% rate.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Overseas stock markets today are higher. The Euro Stoxx 50 is up +0.23%. China’s Shanghai Composite closed up +1.24%, snapping a 3-session losing streak. Japan’s Nikkei Stock 225 closed up +1.03%.
Interest Rates
December 10-year T-notes (ZNZ5) are up +21 ticks. The 10-year T-note yield is down -8.5 bp at 4.076% and posted a 5-month low. T-note prices rallied on the weak US unemployment report and the increased chances for Fed easing. T-note prices are also seeing support from today’s -2.8 bp decline to 2.362% in the 10-year inflation expectations rate, driven by the weak unemployment report and today’s -2% decline in crude oil prices.
T-note prices today are being driven by the weaker labor market and are ignoring, for the time being, concerns about Fed independence sparked by President Trump’s attempt to fire Fed Governor Cook and by Stephen Miran’s intention to be a Fed Governor while still technically holding his White House job on the Council of Economic Advisors.
European government bond yields are lower. The 10-year German bund yield is down -5.3 bp to 2.666%. 10-year UK gilt yield is down -6.4 bp at 4.656%.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven stocks today are mixed, with four stocks trading higher but three trading lower. Tesla (TSLA) is leading the pack with a +3.7% gain after announcing a pay deal for Elon Musk potentially worth as much as $1 trillion to entice him to work at Tesla and meet aggressive targets. Apple (AAPL) is trading slightly higher after news that its annual fiscal sales in India hit a record of nearly $9 billion. Microsoft (MSFT) and Nvidia (NVDA) are down more than -1%.
Crypto stocks are higher today due to Bitcoin’s (^BTCUSD) rally of +2.3% on the weak payroll report and increased expectations for Fed easing. Riot Platforms (RIOT) is up more than +3%, MARA Holdings (MARA) is up more than +2%, and Strategy (MSTR) is up more than +1%. Coinbase (COIN) is up +0.3%.
Homebuilders climbed after the 10-year T-note yield fell to a 5-month low, a bullish factor for mortgage rates and housing demand. PulteGroup (PHM), Toll Brothers (TOL), Lennar (LEN), and DR Horton (DHI) are all up more than +2%.
Broadcom (AVGO) is up more than +11% on an agreement with OpenAI to design and produce a new AI chip, seeking to displace Nvidia’s stronghold. Chip stocks are strong in general today, with gains of more than +2% in ASML (ASML), Micron (MU), and GlobalFoundries (GFS).
Lululemon Athletica (LULU) is down more than -16% after reducing its guidance due to a weak consumer environment and tariffs.
Earnings Reports(9/5/2025)
ABM Industries Inc (ABM), C&F Financial Corp (CFFI), Ermenegildo Zegna NV (ZGN), KalVista Pharmaceuticals Inc (KALV), Louisiana-Pacific Corp (LPX), National Beverage Corp (FIZZ), Pathward Financial Inc (CASH), Pro-Dex Inc (PDEX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

lululemon athletica inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — medium

AI Factors

Consumer Confidence

UK Economy

Japanese Economy

German Economy

Luxury Demand

Supply Chain Disruptions

Recession Risk

Inflation

US Presidental Election

Interest Rates

Security parameters