Did Lululemon Just Make a $2 Billion Mistake?
Lululemon (NASDAQ: LULU) has been one of the best-performing apparel stocks of the century, as the company pioneered an entirely new category of clothes: athleisure.
However, over the last couple of years, the stock has been a downright disaster and is now down 72% from its all-time high at the end of 2023. Challenges facing the brand have included weakness in North America due to brand saturation, competition, and complaints about the product quality and lack of newness in its styles. Additionally, tariffs, including the removal of the de minimis exemption, hit the Canadian company hard, forcing it to rearrange its e-commerce supply chain for the U.S., where most of its revenue comes from.
In the face of those headwinds, former CEO Calvin McDonald, who had led the company since 2018, said he would step down last December, leaving the board to search for its next CEO.
Source Fool.com
Lululemon Athletica Inc. Stock
Currently there is a rather positive sentiment for Lululemon Athletica Inc. with 22 Buy predictions and 7 Sell predictions.
With a target price of 195 € there is a hugely positive potential of 89.69% for Lululemon Athletica Inc. compared to the current price of 102.8 €.
