• by Sarah Mahoney  @mahoney_sarah, Yesterday

Lululemon, long viewed as one of retail’s most consistent performers, is stumbling. Shares of the Vancouver-based company fell as much as 23% after it reported weaker-than-expected guidance, margin pressure, and—most concerning to observers—a 2% comparable sales decline in the Americas.

That rare downturn, despite the launch of buzzworthy product lines like Align No Line, Daydrift trousers, Glow Up, and Be Calm, raised fresh doubts about whether the brand’s grip on premium athleisure lovers is starting to slip.

In a report titled “There’s less juice left to squeeze out of this lemon?” Deutsche Bank analyst Krisztina Katai is maintaining a “hold” rating. She wrote that the sales slowdown was troubling given “relatively easy comparisons” to the prior year and a heavy slate of newness. “It is unclear to us if Lululemon will be able to drive a material uptick in traffic and conversion through more innovation in the second half,” she added, noting that the U.S. may remain “a source of downside risk.”

UBS analyst Jay Sole voiced concern in a note cited by MarketWatch. “A pivotal question is if the slowdown in its U.S. business over the last 12-plus months has been temporary, driven by one-off factors, or a sign of something more fundamental,” he wrote. “Our main takeaway from first-quarter report is the likelihood that something more fundamental at play has increased.” He added that he sees little potential for meaningful U.S. growth.

Jefferies analyst Randal Konik was even more blunt, also in a note cited by MarketWatch: “Sell shares now.”

For the quarter, Lululemon’s revenue rose 7% to $2.4 billion. Comparable sales eked out a 1% gain globally. Income from operations increased 1% to $438.6 million, while profit margins narrowed. Its 2025 revenue forecast—between $11.15 billion and $11.3 billion—translates to 5% to 7% growth, below Wall Street’s expectations.

International sales are also slowing. Comparable sales in China rose 8%, down sharply from the 27% gain reported a year ago.

Lululemon pointed to plenty of positives, including rising U.S. brand awareness, now at 40%, up from the mid-30% range last quarter. It also said some new products sold out quickly.

Brian Nagel, an analyst who covers the company for Oppenheimer, takes a more optimistic view and continues to recommend the stock as likely to outperform competitors. “Management is prudently assuming a cautious stance toward nearer-term financial prospects as tariffs start to take hold,” he wrote. While Lululemon does plan moderate price increases, he believes its scale and balance sheet strength will allow it to “position better against brands with fewer strategic options and forced to take prices higher.”

But those brands—including Alo, Athleta, and Beyond Yoga—are gaining ground. Beyond Yoga, now owned by Levi Strauss, recently opened its first brick-and-mortar location on the East Coast and its largest store to date.

But marketers are starting to wonder: Is Lululemon still a category of one?