Lululemon Shares Sink 80 Percent Amid Divorce and Sales Slump

Lululemon Athletica is facing a difficult period as its stock price dropped to roughly 100 dollars on Friday. This marks an 80 percent decline from the peak of over 511 dollars seen in late 2023. Investors are reacting to a series of lowered sales forecasts, with the company cutting its 2026 revenue outlook for the third time this year.

The business is struggling to maintain growth, as second quarter revenue fell by 4 percent. Comparable sales, which track performance at established store locations, dropped by 9 percent. The company now expects sales to decrease by another 10 to 11 percent in the upcoming quarter, putting pressure on incoming leadership to stabilize the brand.

Adding to the uncertainty, founder Chip Wilson is currently in divorce court. Because there is no prenuptial agreement, shareholders are concerned about the future of his 8.7 percent stake in the company. As the assets are subject to a potential split, the outcome of these legal proceedings could impact the voting block and the internal dynamics of the sportswear retailer.