Why Investors Shouldn't Worry about Lululemon's Sales Drop
When it comes to stock investing over the past few months, there have been COVID-19 winners and losers to pick from. But what does this global situation tell us about any company now that the pandemic has given indications of peaking? Some winners will remain winners thanks to changes in retail and the economy resulting from the pandemic. Some losers will ride out this tempest, laying low and hoping for minimal permanent damage, eventually working their way back to solid financial footing.
Athletic apparel retailer lululemon athletica (NASDAQ: LULU) had been seeing outsized growth before the coronavirus pandemic hit and the company predicted continued strength in the high-end athleisure market. But that strength wasn't powerful enough to prevent a pandemic-induced sales decline in the first quarter.
However, this company's popular products, robust e-commerce platform, and compellingly innovative business model suggest its most recent earnings report will just be a short blip on the company's future growth trajectory.
Source Fool.com
