The athleisure apparel retailer faces tough macro and competitive headwinds.

Lululemon ( LULU 3.40% ) was one of the market's hottest apparel stocks. The yoga and athletic apparel maker's shares closed at a record high of $511.29 on Dec. 29, 2023, marking a 5,581% gain from its split-adjusted IPO price of $9 in July 2007. At the time, the bulls were dazzled by its robust growth and rosy long-term outlook.

But today, Lululemon's stock trades at about $166. It declined nearly 57% in 2025, even as the S&P 500 advanced 13%. Let's see why it underperformed the market, and if that steep pullback represents a once-in-a-lifetime buying opportunity for patient investors.

Why did growth investors love Lululemon?

Lululemon, which was founded in 1998 in Vancouver, established an early m

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