LULU - 1 Growth Stock Down Almost 40% to Buy Right Now
2024-06-11 05:25:00 ET
Share prices of athleisure clothing company Lululemon Athletica (NASDAQ: LULU) are down by roughly 40% from their December 2023 peak. Given its strong performance as a company, especially since 2020, is this stock ready for the bargain bin?
When the COVID-19 pandemic hit, Lululemon benefited from increased consumer spending on a range of goods. That increased spending was driven by the combination of stimulus checks and the limited options consumers otherwise had for spending on experiences. At one point, Lululemon's quarterly revenue was growing by as much as 80% year over year.
The impact of those stimulus funds has since faded and consumers have pulled back on some of their discretionary spending in the past year to deal with some unevenness in the overall economy. As a result, the company's growth rate and share price have faltered as it works to overcome tough comparisons and the market reacts.
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1 Growth Stock Down Almost 40% to Buy Right Now