📍 What's Behind the Fall

LULU just cut its full-year guidance, blaming a “dynamic macroenvironment.” Shares dropped 23%, adding to the retail bloodbath — GAP fell 20% last week, and Skechers is delisting. Tariff risks are also rising, especially for brands sourcing from China or Vietnam.

📍 The Bigger Picture

Despite the miss, Lululemon still boasts one of the strongest brand moats in athleisure. Its gross margin (~55%) and loyal customer base rival luxury, not just sportswear. But the market’s punishing anything that hints at margin pressure or demand softness.

📍 My Strategy

LULU under $300 is starting to look attractive on a 2025 PE basis

I'm not rushing in yet — want to see how Q2 margins hold and how tariffs evolve

Might start with a buy-the-product, watch-the-stock approach — use the product as a feeler, the chart as a trigger

📌 For long-term holders: this may be a 12–18 month value re-entry zone if LULU can reaccelerate through international and men's wear lines.