Some names in the retail and apparel sectors have made a splash in investors' monitors in recent weeks, even months. Unfortunately, the attention is founded on seriously bearish price action, like the fact that shares of Lululemon Athletica Inc. NASDAQ: LULU are now trading at only 48% of their 52-week high, which is dangerously close to making a new 52-week low.
Lululemon Athletica (LULU) shares tumbled to their lowest level since the spring of 2020 as analysts raised concerns about the fashion athletic wear maker's financial performance in a slowing retail environment.
The activewear retailer is pulling its newest Breezethrough leggings in response to mixed customer feedback.
Citi sees building competitive and execution challenges for Lululemon, whose stock ranks among the S&P 500's worst performers this year
Athletic apparel retailer Lululemon Athletica Inc (NASDAQ:LULU) is down 3.1% before the bell, following a barrage of bear notes.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Recently, Zacks.com users have been paying close attention to Lululemon (LULU). This makes it worthwhile to examine what the stock has in store.
Lululemon is in a 40% drawdown because of slowing North American sales. International sales are booming and can help revenue growth over the next five to 10 years.
A strong brand helps Lululemon generate outsized profit margins. Management sees huge growth potential, particularly in China.
Nike shares are down 60% from their previous peak as the company loses sales momentum in the wake of weak consumer spending trends. Shopify, Lululemon, and emerging shoe brand On Holding are all still posting double-digit sales growth.
Slowing sales might be the key reason investors are souring on this business. The competitive nature of the industry is hard to ignore, making it difficult to find lasting success.
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