If You'd Invested $1,000 in Lululemon 5 Years Ago, Here's How Much You'd Have Today

Key Points

• Lululemon was once a high-flying stock, but investors have been disappointed in recent years.

• The company is dealing with stiff competition and a softer economic backdrop.

• Shares have fallen so far that they now trade at a dirt cheap valuation.

• 10 stocks we like better than Lululemon Athletica Inc. ›

Lululemon Athletica (NASDAQ: LULU) just reported financial results for its fiscal 2025 second quarter (ended Aug. 3). The market wasn't pleased, as the stock tanking on the day after the announcement clearly shows. Investors weren't happy with weaker-than-expected revenue guidance.

The company's downward spiral continues a very discouraging trend for shareholders. If you'd invested in Lululemon stock exactly five years ago, here's how much money you'd have today.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

Multiple headwinds

As of Sept. 5, Lululemon shares have declined a gut-wrenching 53% over the trailing-five-year period. An initial $1,000 investment would be worth just $470 today. That's a truly disappointing outcome, especially when you consider the fact that the S&P 500 index has climbed 89% during the same time.

A number of headwinds are to blame. Lululemon's growth has slowed dramatically, with same-store sales in the Americas region falling 4% in Q2. There is lots of competition in the athleisure space, a situation further complicated by ever-changing consumer preferences. Lululemon's product assortment is driving excitement, but a softer economic backdrop doesn't encourage people to spend on expensive clothing and footwear.

Getting back on track

Lululemon's downfall is surprising. In the five years leading up to its all-time high in December 2023, the stock had soared 321%. The company was posting impressive growth and strong profits, as its premium brand continued to find success not only here in North America, but across the globe.

Investors are certainly hoping the company can turn things around. That could take some time, though. Revenue is projected to rise by only 5% (at the midpoint) in fiscal 2025.

The bulls might find no better time to scoop up shares than right now. Lululemon can be bought at a dirt cheap price-to-earnings ratio of 14.

Should you invest $1,000 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 $670,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,023,752!*

Now, it’s worth noting Stock Advisor’s total average return is 1,052% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc. The Motley Fool has a disclosure policy.