"We started the holiday season in a strong position but have since experienced several consequences of the Omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations." The stock market has fallen in recent weeks over inflationary headwinds in the economy, and the potential that the Federal Reserve will raise interest rates to put a halt to escalating consumer prices. LULU PE Ratio (Forward) data by YCharts This explains the near-term volatility with Lululemon's stock price, but it's no reason to sell if you are investing for the long term.