10 Worst Performing Stocks in S&P 500 in 2024

7. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 45

Year-to-Date Share Price Performance: -40.84%

Lululemon Athletica Inc. (NASDAQ:LULU) is an American-Canadian retailer specializing in premium athletic apparel. It designs, distributes, and retails athletic apparel, footwear, and accessories for both men and women. The brand offers a variety of products, including pants, shorts, tops, and jackets suited for activities like yoga, running, and training, along with fitness-related accessories.

Lululemon (NASDAQ:LULU) saw its first major drop in performance in March after it provided disappointing guidance and reported weak sales in the U.S. in fiscal Q4 2024. The shares of the company’s shares dropped close to 16% in a day. Despite outperforming expectations, the company mentioned that it was facing a challenging retail environment due to cautious consumer spending. Sales growth in the Americas slowed to 9%, down from 29% in the prior year.

Nevertheless, the company’s shares saw a bit of recovery after the latest fiscal 2025 second quarter results as the stock gained over 14.5% between August 29 and October 24. At the latest earnings call, CEO Calvin McDonald highlighted Lululemon’s (NASDAQ:LULU) international growth, reporting a total revenue increase of 7% or 8% in constant currency. Women’s merchandise rose 6%, while men’s grew by 11%. The company’s earnings per share increased by 18% due to strong gross margins.

Moreover, the company aims to quadruple its international revenue by 2026, with significant growth in markets like China, where revenue surged 34%. However, U.S. revenue was flat, attributed to reduced newness in women’s products. The CEO showed confidence in future growth, especially in the U.S. women’s segment, supported by innovative product offerings and effective brand campaigns.