2024-05-25 10:00:00 ET
Summary
- LULU is the next COVID-19 beneficiary that has met painful corrections, as the uncertain macroeconomic outlook is prolonged and consumer discretionary spending is impacted.
- The same has been guided by the management for FY2024, with its peers similarly facing demand headwinds and impacted profit margins.
- This has led to LULU's discounted valuations, providing interested investors with an improved margin of safety, further aided by the deep pullback and healthy balance sheet.
- Even so, with the stock charting lower lows while breaking through numerous support levels, it is apparent that bullish support has yet to materialize.
- Combined with the recent management shake up, interested readers may be better off waiting for further clarity from its upcoming earnings call in June 2024.
...
Read the full article on Seeking Alpha
For further details see:
Lululemon May Face More Pain, Despite The Drastic Pullback