Lululemon Shares Sink 18 Percent to Eight Year Low

Lululemon stock dropped 18 percent in after hours trading on September 3, pushing shares below 100 dollars. This decline marks a significant low for the company, as the stock is now trading at levels not seen in eight years. Even though the company reported earnings that beat analyst expectations, investors focused heavily on the weak sales guidance.

The retailer has struggled throughout 2026, lowering its full year revenue projections three times since March. Recent data shows that second quarter revenue fell 4 percent compared to last year, with a sharp 12 percent decline in North American sales. Management cited negative social media sentiment and disappointing product launches as key reasons for the recent slowdown.

The brand faces increasing competition from rivals like Alo Yoga and Vuori, while also dealing with internal leadership changes. Incoming chief executive Heidi O'Neill begins her tenure next week and will face the challenge of executing a turnaround plan. With the company now projecting further revenue declines for the third quarter, investors are watching closely to see if the brand can regain its footing.