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Lululemon shares stretch lower as athleisure icon gives sour full-year outlook

The retailer crossed $10 billion in annual revenue for the first time, but traders are looking forward.

3/27/25 4:23PM

Lululemon shares tumbled over 10% in after-hours trading Thursday after the athleisure giant topped Q4 estimates, but gave less-than-impressive guidance for the year.

Lululemon’s fourth-quarter revenue rose 13% to $3.6 billion, slightly topping FactSet estimates of $3.57 billion. Earnings per share also beat expectations, landing at $6.14 versus the projected $5.85 and above the company’s prior guidance range of $5.56 to $5.64. Same-store sales grew 5.4%, in line with forecasts.

Still, demand for Lululemon has cooled, even as the company is refreshing its product lineup, as competition from brands like Alo and Vuori heats up. Looking ahead, Lululemon expects first-quarter revenue between $2.335 billion and $2.355 billion — below Wall Street’s estimate of $2.39 billion. Earnings guidance also missed the mark, with the company projecting EPS of $2.53 to $2.58 versus expectations of $2.72.

CFO Meghan Frank noted that the company topped $10 billion in annual revenue for the first time, and said Lululemon remains focused on a growth plan that aims to double revenue from 2021 levels to $12.5 billion by 2026.

Lululemon shares are down nearly 12% over the past year.

Luke Kawa2h

Chinese food delivery stocks soar as regulatory probe into price wars may save them from themselves

If there’s one thing Chinese companies are known for, it’s ruthless competition on price to make sure the nation’s products are attractive on global markets. Oftentimes, this comes with implicit or explicit state support for favored industries, which draws the ire of other countries.

Production > profitability is a pretty good shorthand for how China attempts to conquer tradable goods (see: electric vehicles). However, when it comes to consumer-oriented services, policymakers clearly don’t feel the same way.

Alibaba, Meituan, andJD.com are all soaring after the Chinese State Council’s anti-monopoly and anti-unfair competition committee said it’s investigating the food delivery sector over practices that are potentially distorting the market and weighing on brick-and-mortar firms.

These tech giants have been investing heavily in their food delivery capabilities, including via subsidies and incentives. Effectively, the market reaction here is that traders believe regulators are saving these companies from themselves.

A commentary in the state-run People’s Daily published midyear 2025, when JD.com announced plans to bolster its food delivery business, argued that there will be no “winners” in these price wars, which would lead to irrational consumption.

J. Edward Moreno

Moderna says its expects $1.9 billion in 2025 sales amid better-than-expected vaccination rate

Moderna, which has been bleeding money since 2023, said it expects to break even in 2028.

Matt Phillips2h

Tempus AI rises on better-than-expected sales numbers

Cancer diagnostics company and retail shareholder favorite Tempus AI surged early Monday after issuing some fresh, though preliminary, financials ahead of an appearance at an investor conference today.

The Chicago-based company reported better-than-expected Q4 sales numbers of roughly $367 million — Wall Street had expected about $361 million — as well as a diagnostics revenue that more than doubled to $266 million. It also posted an updated corporate presentation on its website ahead of an appearance at the JPMorgan Healthcare Conference that’s expected at 4:30 p.m. ET today.

The company noted that it hasn’t completed its official full-year 2025 or Q4 financial statements yet, which it typically files in February.

Wall Street expects Tempus to lose money through 2027. But the stock has been ripping, rising 75% last year, and through Monday’s open has tacked on another 24% in 2026.

J. Edward Moreno3h

Abivax rises amid report Eli Lilly is preparing a €15 billion bid

French biotech Abivax rose more than 20% in premarket trading after French outlet La Lettre reported that Eli Lilly is preparing a €15 billion bid (or roughly $17.5 billion) for the company.

Lilly has yet to submit a formal bid and is awaiting a regulatory green light, the outlet reported.

Eli Lilly prêt à mettre 15 milliards d'euros sur la table pour la biotech Abivax - LA LETTRE

Max Knoblauch3h

Allegiant to buy smaller-budget airline Sun Country for $1.5 billion

Low-cost airline Allegiant on Sunday announced that will acquire fellow low-cost and leisure carrier Sun Country in a $1.5 billion deal. Allegiant is putting up $1.1 billion in cash and stock, plus assuming about $400 million in debt as part of the transaction.

In a note to employees announcing the deal, Allegiant CEO Gregory Anderson cited a need to consolidate to compete, pointing out that five airlines control 85% of the domestic market in the US. Anderson said that the two airlines share complementary route networks and have no overlap between their bases, which should “minimize the traditional friction that has occurred in past other airline combinations.”

Sun Country, which has a multiyear cargo agreement with Amazon, climbed 14% in premarket trading on Monday.

Amid steep competition, budget airlines have flailed as of late. Allegiant’s deal should be an interesting test of the Trump administration’s feelings on airline consolidation, as Frontier Airlines and Spirit are reportedly once again weighing a merger.