Lululemon Shares Fell 82% From 2023 Peak to October Low

Lululemon (LULU) shares have fallen 82% from their 2023 peak to an October low, and Frank Cappelleri says a new chart setup still needs sustained gains to signal a lasting bottom.

Cappelleri, founder and president of CappThesis, sees a possible inverse head-and-shoulders pattern that formed after shares gapped lower in September. The stock first fell 20% from its high in early 2024, entering bear-market territory, but the decline continued.

Lululemon’s 14-week relative strength index (RSI), a momentum indicator, first moved below 30 in April 2024. Over the past two years, it has largely shifted between oversold territory and the midpoint of its range. Cappelleri’s analysis describes that behavior as characteristic of a persistent downtrend.

In his review of five bullish pattern breakout attempts over the past year, Cappelleri found that four produced no sustained advance. The one modest gain was quickly sold. The latest setup remains a potential pattern, with sustained upside needed to show follow-through.

Separately, Lululemon’s second-quarter results showed revenue fell 4.3% year over year to $2.416 billion. Comparable sales declined 9%, including a 12% drop in the Americas.