Lululemon Athletica Inc. (LULU)

LULU beats Q2 earnings estimates and bets on design innovation and global expansion to sustain its edge in a cooling activewear market.

Lululemon (LULU -0.57%) has not given investors much hope in the past couple of years. The athleisure pioneer's share price has tanked 66% since hitting a peak in December 2023.

Look up the word "monster" and you'll come across two key definitions -- "a large, ugly, and frightening imaginary creature" and "a thing of extraordinary or daunting size." So when we speak of monster stocks, we typically refer to the latter definition (although we may sometimes refer to the former).

The retail sector broadly, and apparel and footwear specifically, is a very competitive market. That's why Lululemon Athletica 's (LULU -0.57%) ascent in the industry is so remarkable.

The Federal Reserve just cut interest rates. The goal was, basically, to protect the U.S. economy from falling into a recession.

Hoka parent Deckers takes the prize for returns on invested capital, Citi says.

U.S. comps are negative, inventories are elevated, and tariff/de minimis changes will cut ~$240M from gross profit, weighing heavily on sentiment despite elite ~60% gross margins and a debt-free balance sheet. Heavy reliance on China's growth (25%+ y/y) creates concentration risk in today's policy climate, while U.S. consumers are showing pushback on price, challenging the durability of LULU's pricing power. The stock is oversold with RSI near bottoming levels, and visible supply chain diversification, U.S. fulfillment shifts, and product refresh could re-rate sentiment before earnings recover, offering contrarian upside.

The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.

Shares of Lululemon Athletica (LULU 0.34%) fell 12% in September, according to data from S&P Global Market Intelligence, as investors digested the athleisure company's disappointing outlook in its Sept. 4 earnings report amid a tougher backdrop for U.S. apparel.

Lululemon Athletica (LULU -0.16%) and Nike (NKE 6.17%) are two iconic, well-known apparel brands. They're popular with young consumers, and many buyers stick with the brands for years.

It has been a terrible year for Lululemon Athletica  (LULU -0.07%) investors. Shares in the athleisure pioneer are down 54% in 2025 (as of Sept.

Apparel is a fickle industry. Brands go through mini boom and bust cycles as consumer tastes evolve.

I found three opportunities in undervalued stocks amid market volatility in 2025. They've fallen between 45% and 60% so far this year. The AI ​​euphoria, which is driving much of the venture capital, premium competition, and tariffs are some of the factors that caused the declines.

Despite the fact that this company has beat the number in each of the last four quarters, estimates are still falling.

After a monster run in 2024, U.S. stocks have kept climbing in 2025. The S&P 500 and the Nasdaq Composite set fresh highs in September.

Lululemon Athletica (LULU 2.48%) has a cultlike following, with stores that are often crowded with customers. That's good news for the business, but what exactly is the business?