Lululemon Falls Below 50-Day SMA: Should You Invest or Hold Off?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2025
0mins
Source: NASDAQ.COM
Stock Performance: Lululemon's shares have declined significantly, losing 56.1% year-to-date, underperforming both the apparel industry and broader market indices, with the stock trading below its 50-day and 200-day moving averages, indicating bearish sentiment.
Financial Outlook: The company has cut its full-year revenue guidance due to sluggish demand in its U.S. market and increased tariff pressures, projecting only 2-4% growth for fiscal 2025, with earnings per share expected to decline.
Competitive Position: Lululemon's performance is notably weaker compared to competitors like Nike and Ralph Lauren, which have shown better growth, while Lululemon's valuation appears low but may reflect underlying weaknesses rather than a buying opportunity.
Investor Sentiment: Analysts have revised earnings estimates downward, reflecting skepticism about Lululemon's near-term growth potential, and investors are advised to remain cautious until the company shows improvement in fundamentals and market traction.
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Analyst Views on RL
Wall Street analysts forecast RL stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 363.060
Low
305.00
Averages
401.85
High
473.00
Current: 363.060
Low
305.00
Averages
401.85
High
473.00
About RL
Ralph Lauren Corporation is engaged in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear and accessories, home, fragrances and hospitality. Its segments include North America, Europe, and Asia. Its brands include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. Its products include apparel and footwear and accessories for men, women, and children, as well as fragrance and home collections, together with its hospitality portfolio. Its range of footwear and accessories include casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, scarves, hats and others. Its range of home products includes bed and bath lines, lighting, dining, floor coverings, giftware and more. Its hospitality collection is comprised of its restaurants, including The Polo Bar in New York City, RL Restaurant located in Chicago, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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