Lululemon shares were 80% below their December 2023 peak on Sept. 24, while the stock’s 8.3 P/E was 64% below the S&P 500’s. The Motley Fool presents the low multiple as a sign of Wall Street pessimism amid slowing growth and a quarterly revenue decline.
Revenue grew 5% in fiscal 2026, which ended Feb. 1, then fell 4% in the quarter ended Aug. 2. In that quarter, women’s leggings sales fell 20% and comparable sales in China dropped 2%.
The P/E is near its lowest level in almost two decades as a public company, compared with a 10-year average of 41.3. Sell-side analysts expect fiscal 2028 revenue of $10.7 billion, nearly 4% below fiscal 2025, after a 37% rise from fiscal 2022 to 2025; the article also cites competition and product-innovation challenges.
