Lululemon Athletica Inc. reported better-than-expected fourth-quarter earnings but issued weak guidance, leading to a sharp decline in its stock price. The company posted earnings per share of $6.14, surpassing estimates of $5.85, and revenue of $3.61 billion, exceeding expectations of $3.58 billion. However, Lululemon's outlook for the upcoming fiscal year fell short of Wall Street projections, primarily due to concerns over consumer confidence and economic conditions. Notably, revenue from the Americas grew by 2% year-over-year, while revenue from China surged by 38%. Despite the positive quarterly results, Lululemon's shares fell approximately 15% on March 28, 2025, amid worries about tariffs and a cautious consumer environment. The stock has now decreased by over 30% since January 30, 2025, and 25% over the past year. Analysts have noted that the company's forecast reflects a broader trend of sluggish demand in the retail sector, with Lululemon attributing its challenges to external economic factors.