Lululemon Athletica (NASDAQ: LULU) stock has looked very drained and low-energy in recent months. The athletic apparel specialist’s share price trades nearly 47% year to date, while the benchmark S&P 500 index is up by almost 10%.
It wasn’t so long ago that Lululemon was a star in the always tough and highly competitive specialty clothing industry. A closer look at how it started falling from the sky, and whether it’s got a chance at regaining altitude, will show the main reason for its drop.
Basically, Lululemon has struggled to cope with two trends — rising competition, and the end of the COVID-19 pandemic-era boom in exercise products, services, and apparel.