Lululemon's stock just cratered 19% — now it wants to sell you someone else's leggings

The two stories are more connected than they look. Together, they say something about what is happening to an ailing retail juggernaut — and offer a few lessons for Canadians who own the stock, shop the stores, or both.

What actually happened to Lululemon’s stock?

Revenue for the quarter ending August 2 fell 4.3% year-over-year to US$2.42 billion, missing analyst estimates, while comparable sales dropped 9%. Lululemon also cut its full-year earnings guidance from a range of US$10.95–US$11.15 to a range of US$9.48–US$9.73 per share, with interim co-CEO Meghan Frank describing the move as a prudent response to a difficult stretch for the business.

The details behind those headline numbers were arguably worse. Sales of leggings, one of Lululemon’s signature categories, fell by roughly 20%, and the Americas region — its biggest market — saw revenue decline 8%. It was the second time this year Lululemon has cut its full-year forecast, and its stock has now declined nearly 69% in 2025. The timing compounds the pressure: incoming CEO Heidi O’Neill, a former Nike executive, takes over on September 8, five days after the earnings report landed.

Why a leggings slump is a personal finance story

A single earnings report is not usually a Canadian money story, but this one carries two lessons. If you hold Lululemon shares directly, or through a broad-market or consumer-discretionary fund inside a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP), the swing is a reminder of how quickly a “safe” growth stock can move on one report. It also underscores why concentrating retirement savings in a single company carries real risk. And if softer comparable sales reflect Canadian and American shoppers pulling back on premium activewear, that is one more sign of how stretched household budgets have become this year.

What is Like New, and how does it work?

Like New is a peer-to-peer marketplace where Canadians can list and buy pre-owned Lululemon items directly from other shoppers. Sellers can choose to receive 70% of the sale price in cash or 90% in store credit, and generally need a receipt to list an item, though some pieces may qualify for a trade-in without one.

A 25,000-square-foot processing hub in Calgary handles inspection and cleaning for items sold through the platform. Lululemon is also running a limited-time mail-in trade-in event from September 14 to 21, offering store credit for eligible used gear sent in directly.

Is buying or selling secondhand Lululemon worth it?

There is no fixed price list on Like New — sellers set their own prices, so savings will vary by item. For a sense of scale, Victoria-based clothing company Anián, which has run its own peer-to-peer resale marketplace since 2021, said its listings typically sell for about 40% of retail value, and the site has generated about C$200,000 in sales while keeping roughly 1,630 kilograms of textile waste out of landfills. Before listing an item on Like New, it’s worth weighing the 70% cash payout against the 90% store-credit option — the better deal depends on whether you plan to shop the brand again.

Neither story on its own should change anyone’s financial plan. But together, they’re a useful gut check. Shoppers eyeing high-priced activewear now have a legitimate secondhand option to weigh against full retail price. And anyone holding a single hot stock — Lululemon or otherwise — just saw a reminder that a strong brand and a robust share price are not the same thing.