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Lululemon's U.S. Business Woes 🚨

And, Broadcom’s new AI chip orders.

September 05, 2025

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Today is Friday, September 5, 2025.

The Early Bird Index today is 90.65 

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Lululemon's U.S. Business Woes 🚨

Lululemon Athletica $LULU ( â–˛ 3.81% ) plunged 15.73% in after-hours trading on Thursday after the athletic apparel retailer posted mixed financial earnings results.

Financials: Lululemon reported earnings of $3.10 per share in the most recent quarter, which exceeded expectations. But revenue was just $2.5 billion, which was lower than expected.

Powering the Story: Although international revenue grew by 22%, revenue in the Americas increased by only 1%. And same-store sales in the Americas declined 4%.

Quote: “While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution.” - CEO Calvin McDonald.

Also: Adding insult to injury, Lululemon’s financial outlook was also weaker than expected.

Early Bird’s Nest Egg Gains: Lululemon’s U.S. business is struggling due to weak sales in its core women’s category, uninspired product offerings, and higher operating costs driven by new tariffs, leading to slashed earnings forecasts and a sharp stock decline in 2025.

  • As a response, Lululemon is focusing on innovation and new digital initiatives to boost customer loyalty.

  • International growth remains strong, offering some hope for overall performance, but it is currently insufficient to offset the sharp contraction and challenges in the U.S. market.

Final Thoughts: Lululemon’s stock was already down 44% this year.

Keep This Stock on Your Watchlist

They’re a private company, but Pacaso just reserved the Nasdaq ticker “$PCSO.” No surprise the same firms that backed Uber and Venmo also backed Pacaso. What is unique is that 10,000+ regular people joined them. Founded by a former Zillow exec, Pacaso has earned $110M+ in gross profits to date. Until 9/18, you can join, too.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

Notables

Notable Earnings Today: ABM Industries (NYSE: ABM).

Notable IPOs Today: Talon Capital Corp. Units (Nasdaq: TLNCU), Sono Group N.V. Ordinary Shares (Nasdaq: SSM), Solarius Capital Acquisition Corp. Class A Ordinary Share (Nasdaq: SOCA).

Notable Equity Crowdfunding Campaigns Ending Today: Qwesty (Wefunder).

Notable Economic Events Today: U.S. 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).

Broadcom’s New AI Chip Orders

The AI trade lives on! Broadcom $AVGO ( â–˛ 1.23% ) jumped 4.58% in after-hours trading on Thursday after posting good financial earnings results.

Financials: Broadcom reported earnings of $1.69 per share and revenue of $15.95 billion in the past quarter. Both were better than expected.

Powering the Story: The stock initially fell in after-hours trading, but it turned positive after Broadcom revealed during its earnings call that it received a $10 billion order from a new customer for custom AI chips.

Final Thoughts: Broadcom, already up 31.95% this year, continues to impress investors.

The cryptocurrency Chainlink’s $LINK.X ( â–Ľ 1.88% ) declined by about 5% on Thursday.

Details: Thursday’s drop is largely due to market-wide downtrend, resistance at key technical levels, and weaker trading volume.

Final Thoughts: Chainlink is still up about 38% in the last 30 days.

Bitcoin Milestone: Public Firm Bitcoin Holdings Top 1 Million BTC (CoinDesk)

Status Quo Survives: The tech antitrust renaissance may already be over (The Verge)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations, and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.