Is lululemon athletica Stock Underperforming the Dow?

• StockStory Top Pick LULU -2.19%

lululemon athletica inc. (LULU), headquartered in Vancouver, Canada, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. Valued at $19.9 billion by market cap, the company produces fitness pants, shorts, tops and jackets for yoga, dance, running, and general fitness.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and LULU perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the apparel retail industry. LULU's reputation for quality and innovation has built a loyal customer base, driving repeat purchases and positive word-of-mouth. Their consistent R&D investment leads to unique products that set them apart from competitors, allowing control over the customer experience and margins.

More News from Barchart

• Dear Oracle Stock Fans, Mark Your Calendars for March 10

• As Elon Musk Aims for AGI, Should You Buy Tesla Stock Now?

• Stocks Close Higher After President Trump says Iran War is "Pretty Much" Complete

• Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!

Despite its notable strength, LULU slipped 51.3% from its 52-week high of $348.50, achieved on Mar. 27, 2025. Over the past three months, LULU stock declined 9.5%, underperforming the Dow Jones Industrials Average’s ($DOWI) marginal gains during the same time frame.

Shares of LULU plummeted 18.3% on a YTD basis and 49.1% over the past 52 weeks, considerably underperforming DOWI’s YTD marginal losses and 11.5% returns over the last year.

To confirm the bearish trend, LULU has been trading below its 50-day moving average since late January. The stock is trading below its 200-day moving average over the past year.

On Dec. 11, 2025, LULU reported its Q3 results, and its shares closed up by 9.6% in the following trading session. Its EPS of $2.59 surpassed Wall Street expectations of $2.22. The company’s revenue was $2.6 billion, topping Wall Street forecasts of $2.5 billion. The company expects full-year EPS to be $12.92 to $13.02, and revenue ranging from $11 billion to $11.1 billion.

In the competitive arena of athleisure, adidas AG (ADDYY) has taken the lead over LULU, with a 16.5% downtick on a YTD basis and 36.5% decline over the past 52 weeks.

Wall Street analysts are cautious on LULU’s prospects. The stock has a consensus “Hold” rating from the 31 analysts covering it, and the mean price target of $209.75 suggests a 23.6% potential upside from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com