Lululemon Surges to 14th in Trading Volume Despite Stock Price Drop

On March 28, 2025, Lululemon Athletica (LULU) experienced a significant trading volume of $37.82 billion, marking a 154.05% increase from the previous day. This surge placed Lululemon as the 14th highest traded stock of the day. However, the stock price declined by 14.19%.

Lululemon Athletica reported a 13% increase in fourth-quarter revenue to $3.6 billion, with diluted earnings per share (EPS) of $6.14. For the full year, revenue grew by 10% to $10.6 billion, and diluted EPS stood at $14.64. The company's fourth-quarter profit rose to $748.8 million, or $6.14 per share, compared to $669.5 million, or $5.29 per share, in the same period last year. Gross profit increased by 15% year-over-year to $2.2 billion. Comparable sales, excluding net revenue from the 53rd week of 2024, increased by 3%.

For the first quarter of 2025, Lululemon expects net revenue to be in the range of $2.335 billion to $2.355 billion, with earnings per share between $2.53 and $2.58. The company's management anticipates full-year revenue for fiscal 2025 to be between $11.15 billion and $11.30 billion, with earnings per share projected to be between $14.95 and $15.15. The company's strong performance is attributed to its Power of Three ×2 growth plan, which focuses on innovation and brand activations.

Despite reporting better-than-expected fourth-quarter results, Lululemon's stock price declined due to a cautious outlook for the future. Executives noted that consumers are being more cautious with their spending, which may impact future sales. The company ended the quarter with 767 stores, reflecting its continued expansion and market presence.