Lululemon Athletica (NASDAQ: LULU) closed Friday’s trading session at $97.09, posting a loss of 2.02% against the prior day’s closing price.

The decline was notably steeper than the broader market, with the S&P 500 falling just 1.09% during the same session.

The Dow Jones Industrial Average dropped a more modest 0.34%, while the Nasdaq, heavily weighted toward technology stocks, fell 2.15%.

Over the past month, LULU shares had already surrendered 0.3%, underperforming the Consumer Discretionary sector, which gained 0.95% during that same stretch.

The S&P 500 managed a 2.44% gain over that one-month period, further highlighting the gap between Lululemon’s recent performance and the wider market’s momentum.

Investor attention is now turning toward the company’s upcoming earnings report, where analysts anticipate an EPS of $0.97, representing a steep 62.55% fall from the same quarter of the prior year.

The current consensus estimate calls for quarterly revenue of $2.31 billion, a decline of 10.02% compared to the year-ago period.

Full-year consensus estimates project earnings of $9.55 per share and revenue of $10.5 billion, reflecting year-over-year changes of -27.98% and -5.46% respectively.

From a valuation standpoint, LULU is trading at a Forward P/E ratio of 10.37, a notable discount compared to its industry average Forward P/E of 16.44.

The company’s PEG ratio currently sits at 2.36, above the Textile-Apparel industry’s average PEG ratio of 1.96, suggesting the stock may be pricing in slower earnings growth relative to peers.

The Textile-Apparel industry carries a Zacks Industry Rank of 202, placing it within the bottom 18% of more than 250 industries tracked.

Despite a marginal 0.11% upward shift in the Zacks Consensus EPS estimate over the past month, Lululemon holds a Zacks Rank of #5, categorized as a Strong Sell.

The Zacks Rank system, which runs from #1 (Strong Buy) to #5 (Strong Sell), has an independently audited track record, with #1-ranked stocks delivering an average annual return of +25% since 1988.

Analyst estimate revisions remain a closely watched signal for near-term stock performance, and the current trajectory for LULU offers limited encouragement for bulls heading into the next earnings cycle.