Lululemon Athletica's stock experienced a significant 24-hour plunge of 11.51% in post-market trading on Friday. The sharp decline followed the company's release of its latest financial results and a substantial downward revision of its full-year guidance.
The athletic apparel maker cited multiple headwinds for the weaker outlook, including a spike in negative commentary around the brand in the media and on social channels. Management also acknowledged that some new product launches, including a recent line of yoga apparel, have not generated the anticipated customer response or provided the expected "halo effect" on other product categories.
Furthermore, the company is grappling with persistent weakness in its key North American market, where sales trends have worsened. Higher tariff costs are also pressuring profit margins. These challenges come amid a recent public dispute with founder Chip Wilson, whose criticism has contributed to brand headwinds that management says have impacted sales performance.