2024-07-17 08:30:00 ET
Summary
- Lululemon investors have suffered a stunning bear market decline.
- Buy-the-dip opportunities have not worked out as selling intensity continued.
- Ambitious growth targets are under scrutiny as Lululemon faces challenges in international expansion and inventory management.
- Lululemon faces intense competition from direct US competitors like Alo Yoga and Vuori, undermining its growth prospects.
- I argue why I was wrong about LULU. I placed too much confidence in its ability to salvage its growth thesis. Read on.
Lululemon: Bear Market Decline Worsened
Lululemon Athletica ( LULU ) (LULU:CA) (LLL:CA) investors have suffered a terrible year, to say the least, significantly underperforming sector peers. With a 1Y total return of -26%, LULU seems to have lost the market's confidence as investors fled from the stock. My bullish article in April 2024 also did not work out favorably, as LULU's attempted bottoming wasn't sustained....
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For further details see:
Lululemon: Avoid Catching This Falling Knife (Rating Downgrade)