Valued at a market cap of $31.2 billion, lululemon athletica inc. (LULU) is a global technical athletic apparel, footwear, and accessories company. Based in Vancouver, Canada, the company operates its business through different channels in each market, including company-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and lululemon fits this criterion perfectly. The company has built a strong global presence through a combination of innovative product lines. It focuses on wellness, community engagement, and product quality, which continue to resonate with fitness-conscious consumers.

Lululemon stock has declined 38.9% from its 52-week high of $423.32. LULU's stock has dipped 22.6% over the past three months, lagging behind the VanEck Retail ETF’s (RTH) 5.4% increase.

In the long term, shares of LULU dropped 18.8% over the past 52 weeks, notably underperforming RTH’s 16.1% rise over the same time frame. Additionally, lululemon stock has declined 32.4% on a YTD basis, whereas RTH has surged 5.9%. 

Currently, the stock is trading below its 50-day and 200-day moving averages. 

lululemon released its Q1 2025 results on Jun. 5. The company posted revenue of $2.4 billion, up 7.3% year-over-year, exceeding Wall Street expectations. Its EPS came in at $2.60, reflecting a 2.6% increase from the year-ago quarter, and narrowly beating the consensus estimates. For fiscal 2025, Lululemon expects net revenue between $11.15 billion and $11.3 billion, and EPS is projected to range between $14.58 and $14.78. However, lululemon stock tumbled 19.8% the next day.

Compared to its peer, Burlington Stores, Inc. (BURL) has outperformed LULU stock. BURL stock has gained 4.5% over the past 52 weeks, but has declined 15.3% on a YTD basis.

Although LULU has underperformed relative to its industry peers, analysts are moderately optimistic about its prospects. LULU has a consensus rating of “Moderate Buy” from the 31 analysts covering the stock. As of writing, the stock is trading below the mean price target of $322.07.