Why Lululemon Keeps Sliding 🛑

Lululemon Athletica $LULU ( ▲ 1.42% ) plummeted 18.17% in after-hours trading on Thursday after posting mixed earnings results, including a decline in revenue.

Financials: Lululemon reported earnings of $2.92 per share in the past quarter, exceeding expectations. But revenue was just $2.4 billion, which was lower than expected.

Details: Revenue decreased 4%, including an 8% decrease in Americas revenue. Comparable sales decreased 9% in the period, including a 12% decrease in the Americas.

Powering the Story: The company expects revenue to drop 10% to 11% in the current quarter. It expects earnings per share to be between 93 cents and 98 cents. Lululemon also cut its full-year outlook, marking the second time this year the company lowered its outlook.

Quote: “While we continue to navigate some challenging dynamics, we are taking a prudent approach with our revised full-year outlook.” - Meghan Frank, Interim Co-CEO and CFO.

Early Bird’s Nest Egg Gains: Lululemon’s “challenging dynamics” refer to a combination of weakening demand in its core markets, product and brand issues, and intensified competition that have led to its first post‑pandemic decline in comparable sales and multiple guidance cuts.

Higher product costs, tariffs, and elevated markdowns have also pressured margins.

Final Thoughts: The company needs a new permanent CEO to turn the ship around. Lululemon’s stock was already down 42% this year.

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Notables

Notable Earnings Today: Knot Offline Partners (NYSE: KNOP).

Notable IPOs Today: Xtend AI Robotics, Inc. (NYSE: XTND).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET).

Zscaler's AI Security Case

Photo by Windows on Unsplash

Cloud security company Zscaler $ZS ( ▲ 2.94% ) fell 2.14% in after-hours trading on Thursday after posting good earnings results.

Financials: Zscaler reported earnings of $1.19 per share in the past quarter and revenue of $898.2 million. Both were better than expected.

Quote: “We are uniquely equipped to help companies both combat the threats created by agentic AI and securely deploy AI agents and models.” - CEO Jay Chaudhry.

Powering the Story: Despite making its case to handle rising AI security, the stock fell due to growth‑quality concerns. The company’s outlook implied growth slowing down.

Final Thoughts: The stock has fallen over 19% this year. Can it turn things around?

UiPath Stumbles After Mixed Results

The software company UiPath $PATH ( ▲ 1.28% ) fell 7.45% in after-hours trading on Thursday after posting mixed earnings results.

Financials: UiPath reported earnings of 15 cents per share in the past quarter, which were in-line. Revenue was $410 million, which was better than expected

Final Thoughts: It’s a setback for UiPath after the stock rose about 14% to start the year. It was up 29% in the past 30 days.

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