On September 4, Lululemon Athletica fell 18.04% in pre-market trading, trading at $99.85/share, with turnover of approximately $2.05 million.

The decline was triggered by the company's fiscal Q2 earnings report released after the prior session's close, which revealed weaker-than-expected revenue alongside a significant downward revision to full-year guidance. Q2 revenue fell 4% year-over-year to $2.42 billion, missing the consensus estimate of $2.46 billion, while same-store sales declined 9%. Although Q2 EPS of $2.92 beat the $1.80 estimate, the forward outlook alarmed investors.

The company slashed its full-year revenue guidance from $11.0-$11.15 billion to $10.35-$10.50 billion, well below the analyst consensus of $11.03 billion. Full-year EPS guidance was cut to $9.48-$9.73 from the prior $10.95-$11.15 range. Management warned that Q3 North American sales are expected to decline approximately 15%, with Canada facing even steeper drops. Executives acknowledged that core categories, including yoga pants, decelerated more than anticipated, and signaled plans to increase seasonal clearance activity. Notable investor Michael Burry stated he would add to his position if shares fell below $100.

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