Lululemon Athletica Inc (code: LULU)
52-week high: $423.32
52-week low: $226.01
Last closing price: $265.27 (-19.80%)
Although the first quarter performance was in line with market expectations, the sportswear chain Lululemon released a disappointing second quarter performance forecast after the market closed on June 5, and lowered its full-year profit forecast. The news caused the company’s stock price to plummet by nearly 22% in after-hours trading that day. After the market opened on June 6, the stock price continued to fall and eventually closed with the largest single-day drop in the past five years.
Judging from the performance trends in the past few fiscal quarters, Lululemon’s demand has been weak. According to the annual report of the last fiscal year, more than 80% of Lululemon’s products are produced in Asian countries. Therefore, the additional costs brought by the current US trade tariffs are worsening its performance.