A Funanc1al Flash Look at a 20% Selloff That Might Stretch into Opportunity 🧘♀️

📅 June 6, 2025 | 💸 Ticker: LULU | Price: $264.51 🔻 -20.03%
💡 Category: Insider Purchases, International Investments, Retail Therapy, Brand Power, Stock Swings, Epiphany
🛍️ Subtext: Stretchy pants, solid margins, and insider confidence—what’s not to like?

😱 Trigger: Major Selloff, But We Remember Something...

Epiphany mode: That time last fall when CEO Calvin McDonald bought 4,000 shares at $260 a pop? Well... we’re basically there again.
💰 That’s a $1M vote of confidence.

Even more telling? In March, director Martha Morfitt scooped up shares at $389.05. Ouch.

Now down 20% in a day, are LULU shares a buying opportunity… or just torn yoga pants?

🐋 The Whales Are (Still) Stretching Into It

Institutions love Lululemon. They own 101.04% of float. Yes, more than 100%. It’s Wall Street math. 🧮💥

Top Holders:

• FMR (Fidelity): 12.6%

• Vanguard: 11.5%

• BlackRock: 8.3%

• T. Rowe Price: 4.4%

• Martha Morfitt’s million-dollar courage: still unmatched.

🔍 For full Institutional Ownership breakdown, see here.

🧦 What Does Lululemon Actually Do (besides fleece hoodies & hearts)?

The Vancouver-born brand sells technical athletic apparel, footwear, and accessories.
Via:

• 🏪 Company stores (770 of them)

• 💻 E-commerce

• 🧘 Studio & campus pop-ups

• ♻️ Like New (the resale arm of enlightenment)

It's not just clothes—it’s a lifestyle. With abs.

🧾 Q1 2025 Earnings Snapshot: No Panic Pants Required

📊 Revenue: $2.4B, up 7%
🌍 International growth: +19% (Hello, China!)
💸 Gross margin: 58.3%
🧮 EPS: $2.60, vs. $2.54 last year
🛍️ Buybacks: 1.4M shares = $430M
💰 Cash: $1.3B on hand
🧦 Inventory up 23%—but unit growth only 16% = not bloated

CEO Calvin McDonald says they’re playing offense. CFO Meghan Frank says they’re grateful and focused. Wall Street says: “You’re down 20%, explain yourselves.” 😅

🔮 Outlook: Enlightenment or Enlightened Pullback?

2025 Revenue Guidance:
💵 $11.15B – $11.3B

2025 EPS:
💡 $14.58 – $14.78

👉 After accounting for share repurchase, that’s double-digit growth on a forward P/E near 20.4x.

Not cheap. But not unreasonable. Especially for a brand with cult loyalty and margins fatter than your favorite croissant.

👉 Want the full picture? Dive into Lululemon’s financials here.

📉 So Why the Stock Slump?

• U.S. comps down 2%

• Margins didn’t expand enough

• Inventory pile-up = anxiety

• Market was expecting more om-mentum

• Guidance disappointed

🧘 Should You Buy the Dip?

🎯 Pros:

• Insider + institutional confidence 🧠💼

• Strong international performance 🌏

• Brand power = pricing power 💃

• Balance sheet = fortress 🏰

⚠️ Risks:

• Macro + tariffs + Nike lurking 👟

• Growth in the U.S. may be losing stretch, although some of this may be priced-in by now.

• Pricey if revenue stalls 🛑

And let’s be honest: Lulu still doesn’t pay a dividend. It’s yoga, not income investing.

Interested in another investment idea?
Check our take on UnitedHealth Group.

💥 Final Pose: Is This Downward Dog Worth Fetching?

The stock may have just rerated to something resembling buyable.
CEO’s 2024 entry price now looks like a support line in disguise.
With strong execution and global growth, LULU may yet surprise investors with a sweet rebound… and maybe some stylish shorts to go with it.

🩳 Speaking of which: 5% short interest. Could be a squeeze coming. Probably not short-term, but that doesn't mean there's no opportunity.

📛 Disclaimer: We own shorts. Not stock. Or yoga pants. Do your own due diligence—downward, upward, sideways.

🧭 Want More Like This?

👉 Browse our Insider Purchases Center
👉 Explore our Follow the Pundits Hub: When Big Bets Matter or our Young Guns & Turnaround Stocks 
👉 Dive into Stock Market Humor & Serious-ish Plays
👉 For even older brands on new missions, explore our Corporate Resurrection Series. Nope, doesn't exist anymore.