Lululemon’s Growth Potential Amid Market Challenges
Lululemon's stock has faced significant pressure, dropping 66% from its peak earlier this year as investor enthusiasm shifts overwhelmingly toward artificial intelligence (AI) plays. The athleisure giant's slowing North American revenue growth—just 1% year-over-year last quarter—has spooked markets, particularly against a backdrop of declining sales across the apparel sector.
Yet beneath the surface, the brand's international expansion and resilient market share suggest undervalued potential. While competitors like Athleta posted a 9% revenue decline, Lululemon's premium positioning and new high-profile marketing partnerships could catalyze a rebound once consumer spending stabilizes. The current valuation may present a rare entry point for growth-oriented investors.
