Robbins LLP is Investigating Allegations that Lululemon Athletica Inc. (LULU) Misled Investors Regarding its Inventory Allocation Issues

Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Lululemon Athletica Inc. (NASDAQ: LULU) securities between December 7, 2023 and July 24, 2024. Lululemon is principally a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories.

The Allegations

According to the complaint, during the class period, defendants failed to disclose to investors:  (1) that the Company was struggling with inventory allocation issues and color palette execution issues; (2) that, as a result, the Company’s Breezethrough product launch underperformed; (3) that, as a result of the foregoing, the Company was experiencing stagnating sales in the Americas region; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. 

Plaintiff alleges that the Company's stock suffered significant loss after defendants disclosed its financial results for the fourth quarter and full year ended January 28, 2024. Further, after reports regarding the Company's inconsistent inventory allocation and the Company's decision to "pause on sales [of the Breezethrough yoga wear] for now to make any adjustments necessary to deliver the best possible product experience," the stock again declined.

What Now: You may be eligible to participate in the class action against Lululemon Athletica Inc. Shareholders who want to serve as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.