Lululemon Stock Crashed 80%, and Founders are Now Divorcing

Lululemon Athletica (LULU) closed Friday at $100.61, down 17.38% in a single session. That is about 80% below the $511.29 peak it hit in December 2023. Its founder is now in divorce court.

The Nasdaq-listed sportswear retailer has cut its sales forecast three times this year. Days after the latest cut, reports confirmed founder Chip Wilson is divorcing without a prenuptial agreement.

A Third Guidance Cut Pushed Lululemon to an 8-Year Low

Guidance is a company's own forecast of what it expects to sell. Lululemon has lowered its 2026 forecast from $11.35 billion in March to $10.35 billion now.

Second-quarter revenue fell 4% to $2.4 billion. Comparable sales, a measure that counts only stores open for at least a year, dropped 9%.

Profit looked healthier than the business. Earnings of $2.92 a share included a one-off $134.5 million refund on import tariffs.

BeInCrypto reported the stock's drop to eight-year lows on September 4. Shares have not recovered, and the company expects third-quarter sales to fall another 10% to 11%.

… Continue reading the full article at the original source below.