1 Growth Stock Down 50% to Buy Right Now
Giving credit where it's due, Citi analyst Paul Lejuez saw it coming a mile away. He downgraded Lululemon Athletica (NASDAQ: LULU) in July on concerns that "the overall product assortment lacks cohesion, is not compelling/exciting to the consumer and feels disjointed." He added that "younger brands present additional risk to [Lululemon's] sales and margin."
Just as predicted, the fitness apparel brand's second-quarter results were crimped by a "product plan that introduced less newness," leading to sales that fell short of analysts' estimates.
The company's management team is still optimistic about the future, of course, even as it lowered full-year revenue and earnings guidance. As CEO Calvin McDonald explained during the second-quarter earnings conference call: "For 2025, we are fast-tracking several new styles within performance shorts, tops, and tracksuits." He added that the company "will begin to see the benefits of these strategies over the upcoming quarters and return to our historical levels of newness no later than spring 2025."
Source Fool.com
Lululemon Athletica Inc. Stock
Currently there is a rather positive sentiment for Lululemon Athletica Inc. with 91 Buy predictions and 6 Sell predictions.
With a target price of 449 € there is a hugely positive potential of 86.69% for Lululemon Athletica Inc. compared to the current price of 240.5 €.
