NKE - Lululemon: Now Is Not The Time To Be Taking A Position

• Lululemon’s impressive sales growth and incredible customer acquisition appear to be reaching a near-term inflection point with intense competition and declining economic activity creating near-term headwinds.
• The company’s direct-to-consumer sales are showing deceleration as their proportion of sales slowly moves back towards pre-pandemic levels.
• Lululemon’s risk-to-reward currently yields a net negative when factoring in a premium on the company’s stock.
• Overall, Lululemon is a great company but is not a buy in this current market environment and at its current price.

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