LULU - Down 40% Time to Buy the Dip on Lululemon Stock for the Rest of 2024?
2024-07-21 14:08:00 ET
Apparel is a hypercompetitive business. Going through boom and bust trends, the apparel shopper can switch habits on a dime, sometimes to the detriment of investors. Lululemon (NASDAQ: LULU) investors are feeling this volatility at the moment. The stock is off 43.5% from recent highs as of this writing due to a huge slowdown in its core North American market. Wall Street is worried about upstart competitors taking share in the athleisure space and wondering whether Lululemon's best days are behind it.
But perhaps Wall Street's reaction is overblown. Is Lululemon stock a buy, down over 40% from all-time highs?
In its most recent quarter that ended in April, Lululemon showed a geographical divergence for its athleisure business. North American sales are stagnating -- growing only 3% year over year -- while international revenue is booming.
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Down 40%, Time to Buy the Dip on Lululemon Stock for the Rest of 2024?