What Should Lululemon Athletica, Inc Investors Know After 17.38% Stock Drop? The Law Offices of Frank R.

Impact · against what's priced in

The news is largely non-material as the stock price already reflects the guidance cuts and brand erosion in China. The class action lawsuit introduces a new, though likely modest, legal liability that was not previously modeled.

LULU+0.00

Already priced in

The price assumes

A 5-7% full-year revenue decline to roughly $10.35-10.5 billion

The article reiterates the revenue guidance cut to $10.350-$10.500 billion and the associated brand issues, which the market has already priced in.