Summary3 min read

Becker Business Podcast – "Lululemon Gets Crushed"

Host: Scott Becker
Date: September 6, 2025

Episode Overview

In this brisk episode, Scott Becker covers the dramatic stock market plunge of Lululemon following poor second quarter results and a dismal forecast, placing it within the broader theme of business volatility. Scott contrasts Lululemon’s decline with the stellar performance of American Eagle Outfitters and provides some brief commentary on the wider economic context. The tone is candid, conversational, and infused with Becker's characteristic wit.

Key Discussion Points & Insights

Lululemon’s Poor Performance

Stock Plummets 15%:
- “[Lululemon] is down 15% today. Basically horrendous second quarter results and bad forecast for the rest of the year.” (01:03)
Long-Term Decline:
- “They're down 54% year to date. They just have missed the boat on so many of the latest things in trying to keep great, to keep interesting, to keep vibrant, to keep the go-to place.” (01:45)
Customer Engagement Issues:
- Becker shares a personal anecdote about Lululemon losing its appeal: “At one point you could always find what you loved and find a piece that you loved at Lululemon. For me, for some period of time it was T shirts and sweatpants. Always could find the best. Now Viori makes much better T-shirts.” (01:16)
- Discusses inconsistency in merchandise: “Once they find something she likes, then they end up rotating it out of merchandise.” (01:39)
Competition:
- “They're getting outflanked by Vuori and so many other companies. It's literally a disaster.” (01:30)

Broader Market & Retail Comparisons

American Eagle’s Strong Results:
- “In contrast, American Eagle Outfitters hit it out of the park, up 38% yesterday on great earnings for the second quarter.” (02:12)
Larger Economic Troubles:
- Refers to multiple things “getting crushed”—not just Lululemon, but also the U.S. jobs market. (00:44, 02:25)
- Reference to stocks: “At least some of these companies in the US Markets, the stocks are doing fine because there's now increased bets that the US that the Fed will cut rates and that that will goose the market a little bit.” (02:30)

Commentary and Tone

Becker’s Brand of Humor:
- “I'm an athlete, so I need those kinds of things. I say that jokingly. I'm a horrendous athlete.” (01:59)
Reflections on Brand Loyalty:
- Despite his family still purchasing some Lululemon items, Becker indicates a decline in the brand’s must-have status. (01:35)
- “Once they find something she likes, then they end up rotating it out of merchandise.” (01:39)
General Sentiment:
- “Lemon getting crushed, really struggling.” (02:10)

Notable Quotes & Memorable Moments

On Lululemon's Missteps:
- “Lululemon’s doing an absolutely horrendous job of capturing their customer and merchandising.” (01:29)
Personal Touch:
- “For me, for some period of time it was T shirts and sweatpants. Always could find the best. Now Viori makes much better T shirts.” (01:16)
Humor & Self-Deprecation:
- “I'm an athlete, so I need those kinds of things. I say that jokingly. I'm a horrendous athlete. But God bless. Good fun.” (01:59)
On Contrasting Companies:
- “American Eagle Outfitters hit out of the park, up 38% yesterday on great earnings for the second quarter. Again, Lulu gets crushed.” (02:13)

Timestamps for Key Segments

00:31 – 01:10
Introduction of main theme: Lululemon’s stock drop and poor results.
01:11 – 01:55
Personal experience with Lululemon, shift in customer loyalty, competition from Vuori.
01:56 – 02:25
Lululemon’s struggles summarized; comparison with American Eagle Outfitters’ success.
02:26 – 02:42
Broader economic context: jobs market, stock market reaction, Fed rate cut speculation.

Summary

This episode delivers a concise yet vivid snapshot of Lululemon’s current woes in the retail market, underlined by missed merchandising trends and intensifying competition. Scott Becker’s blend of personal insights and market analysis, peppered with wit and candid reflections, not only highlights Lululemon’s troubles but also positions them within the context of broader economic uncertainty—while spotlighting retail winners like American Eagle. The episode’s tone is conversational and direct, making complex market shifts relatable and easy to digest for listeners.

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Transcript2 lines

[00:02]
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[00:31]
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This is Scott Becker with the Becker Business Podcast and the Becker Private Equity Podcast. Today's discussion and when we cover it the Becker Business Podcast the Becker Private Equity Podcast Startups, private equity, investing, technology, some and a lot more. And thank you for listening. Today's discussion is Lululemon gets Crushed. We've got a lot of things getting crushed today. Like the US Jobs market got crushed, a couple other things got crushed. But today's story is Lululemon crushed. So lululemon is down 15% today. Basically horrendous second quarter results and bad forecast for the rest of the year. And this is not surprising to those that that shop Lululemon. At one point you could always find what you loved and find a piece that you loved at Lululemon. For me, for some period of time it was T shirts and sweatpants. Always could find the best. Now Viori makes much better T shirts. Our family still bought a bunch of tank tops there, God bless her. I saw the package come in. But she did admit that she bought them. So it is what it is. But, but notwithstanding the fact that they've got good tank tops, she literally bought like three or four of them, feeling that we were sort of like that. Once they find something she likes, then they end up rotating it out of merchandise. But, but the, but the bigger story here is Lululemon's doing an absolutely horrendous job of capturing their customer and merchandising. They're getting outflanked by Vuori and so many other companies. It's literally a disaster. They're down 15 today. They're down 54 year to date. They just have missed the boat on so many of the latest things in trying to keep great, to keep interesting, to keep vibrant, to keep the go to place. You know, it used to be a regular go to place when I had a few extra bucks to buy an extra piece or something like that, you know. You know, I'm an athlete, so I need those kinds of things. I say that jokingly. I'm a horrendous athlete. But God bless. Good fun. Thank you for listening again. Lemon getting crushed really struggling. In contrast, American Eagle Outfitters hit out of the park, up 38% yesterday on great earnings for the second quarter. Again, Lulu gets crushed. U.S. economy getting rushed. Jobs, work getting crushed. A tough day for watching the stocks today. At least some of these companies in the US Markets, the stocks are doing fine because there's now increased bets that the US that the Fed will cut rates and that that will goose the market a little bit. Thank you for listening to the Becker Business podc, the Becker Private Equity Podcast. Thank you to our producer, Chanel Bunger. We appreciate you so much. Thank you all.