3 Reasons to Buy Lululemon Athletica, and 1 to Sell

Lululemon Athletica (NASDAQ: LULU) recently impressed investors with a solid first-quarter earnings report. The athletic apparel retailer's revenue rose 32% year over year to $1.61 billion, beating analysts' estimates by $60 million, as its comparable-store sales increased 28%.

Its net income grew 31% to $190 million, or $1.48 per share, which also exceeded the consensus forecast by a nickel. Those growth rates are impressive, but Lululemon's stock remains nearly 40% below its all-time high from last November. Let's review three reasons to buy Lululemon -- and one reason to sell it -- to see if it's a turnaround play.

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Source Fool.com