#LululemonTumbles20%OnWeakGuidance
A 20% drop in one session is a warning but the numbers underneath it tell the bigger story.
$LULU.US plunged toward the $100 area after another sharp cut to its 2026 outlook. Q2 revenue fell 4% YoY to $2.42B, while comparable sales dropped 9%. The company now expects full-year revenue of $10.35B–$10.50B, well below its previous $11B–$11.15B forecast.
Technically, the move is significant because $100 is both a major psychological level and a key liquidity zone. A decisive break below it could keep sellers in control, while reclaiming $100 would be the first sign that buyers are absorbing the panic selling.
What concerns me more is the underlying demand: leggings sales fell 20%, while North American comparable sales dropped 12%. This isn't just a chart breakdown it points to a deeper brand and consumer demand problem.
My take: I wouldn't rush to call $100 the bottom. I'd watch price action around this level and wait for confirmation rather than trying to catch a falling knife.
Do you think $LULU.US can rebuild momentum from here, or is the turnaround still far away?
#LululemonTumbles20%OnWeakGuidance #LULU #Stocks #Trading
A 20% drop in one session is a warning but the numbers underneath it tell the bigger story.
$LULU.US plunged toward the $100 area after another sharp cut to its 2026 outlook. Q2 revenue fell 4% YoY to $2.42B, while comparable sales dropped 9%. The company now expects full-year revenue of $10.35B–$10.50B, well below its previous $11B–$11.15B forecast.
Technically, the move is significant because $100 is both a major psychological level and a key liquidity zone. A decisive break below it could keep sellers in control, while reclaiming $100 would be the first sign that buyers are absorbing the panic selling.
What concerns me more is the underlying demand: leggings sales fell 20%, while North American comparable sales dropped 12%. This isn't just a chart breakdown it points to a deeper brand and consumer demand problem.
My take: I wouldn't rush to call $100 the bottom. I'd watch price action around this level and wait for confirmation rather than trying to catch a falling knife.
Do you think $LULU.US can rebuild momentum from here, or is the turnaround still far away?
#LululemonTumbles20%OnWeakGuidance #LULU #Stocks #Trading
