Why Lululemon Stock Was Sliding Today
Key Points
Investors had hoped the Supreme Court would block the Trump tariffs, but it delayed its ruling.
Lululemon is trying to bounce back after a disappointing year.
The stock looks like a good value.
- 10 stocks we like better than Lululemon Athletica Inc. ›
Shares of Lululemon Athletica (NASDAQ: LULU) were pulling back today in response to the Supreme Court's decision to delay a ruling on tariffs.
The stock was one of several in the retail sector to fall, and was trading down 4.5% as of 12:36 p.m. ET.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Lululemon.
What happened with the Supreme Court
A number of retailers, including Lululemon, had sued the Trump administration for refunds if tariffs are reversed, and investors had anticipated a decision today from the court. While a decision is still expected to come, it's unclear when that will happen.
Lululemon has been hit hard by tariffs, and the headwinds could have contributed to the decision to push out CEO Calvin McDonald, and the turmoil that has surrounded the company since then, as founder Chip Wilson is pushing for a proxy battle.
Lululemon said before that the removal of the de minimis exemption would cost it about $240 million in fiscal 2026, and it has forced it to rearrange its distribution network to fulfill U.S. online orders domestically.
What's next for Lululemon
Lululemon was one of the worst-performing stocks on the S&P 500 last year as the company saw sales stagnate in its core North American market due to weak execution and headwinds in discretionary spending.
McDonald had announced a turnaround plan, but it's unclear where that goes without him at the helm. Still, the stock looks like an attractive value at the current price if it can get back to growth as it trades at a price-to-earnings ratio of just 14.
Should you buy stock in Lululemon Athletica Inc. right now?
Before you buy stock in Lululemon Athletica Inc., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lululemon Athletica Inc. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $488,222!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,134,333!*
Now, it’s worth noting Stock Advisor’s total average return is 969% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 9, 2026.
Jeremy Bowman has positions in Lululemon Athletica Inc. The Motley Fool has positions in and recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.
Recommended Articles
