Lululemon’s China Backlash Deepens Sales Slump as Profit Falls

Lululemon Athletica Inc. shares plunged nearly 20% after the apparel maker reported declining second-quarter revenue and profit, dragged down by an abrupt sales reversal in China and persistent weakness across North America.

The stumble on the Chinese mainland — previously Lululemon’s primary growth engine — underscores how quickly localized marketing missteps and rising competition from rivals like Alo Yoga can derail multinational brands in critical consumer markets.