The S&P 500 index rebounded in May and continued its winning streak through June.
Not all S&P 500 stocks, however, made investors money.
The top two worst-performing stocks in the index hit their 52-week lows in June.
The S&P 500 (SNPINDEX: ^GSPC) index rose 5% in June, but there were plenty of laggards among the index's 500 stocks. The two worst-performing stocks in the S&P 500 fell by double-digit percentages. Notably, both were consumer stocks.
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Lululemon Athletica (NASDAQ: LULU) stock plummeted over 20% on a single trading day in June, marking one of its biggest intraday falls in history, after reporting poor numbers. It ended the month down 25%.
Lululemon's same-store sales grew by only 1% year over year, while its operating margin fell by 110 basis points to 18.5% in the first quarter. With tariff-driven costs eating into its profits, Lululemon slashed its earnings outlook for the full year by almost 25% to $14.68 per share at the midpoint.
However, Lululemon reaffirmed its sales growth guidance of 7% to 8% and is raising prices and diversifying sourcing channels to mitigate the impact of tariffs. Lululemon doesn't manufacture but outsources production to countries like Vietnam, Cambodia, and Sri Lanka. Lululemon, however, still gets almost 75% revenue from the Americas.
After June's fall, Lululemon stock is trading at a price-to-earnings (P/E) of 16, less than half its five-year average P/E.
J.M. Smucker (NYSE: SJM) stock tanked 12.8% to a 52-week low of $93.30 per share in June after reporting 3% and 13% declines in sales and adjusted earnings per share (EPS), respectively, for its fourth quarter of fiscal 2025. Low demand for dog snacks and sweet baked goods, the recent divestment of pet food brands, and rising costs were largely to blame.
Smucker expects total sales to grow by only 2% to 4% in fiscal 2026, versus 7% last year, and adjusted EPS to fall by 11%.
Smucker's Uncrustables brand, however, reported double-digit sales growth in Q4 and is close to hitting a billion dollars in sales. Meanwhile, Smucker continues to generate solid cash flows and is taking "decisive actions" to revive its sweet baked segment, which has struggled since acquiring Twinkies maker Hostess Brands in 2023.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends J.M. Smucker and Lululemon Athletica Inc. The Motley Fool has a disclosure policy.