Down 60%, Is the Worst Over for Lululemon Stock? The Answer May Surprise You.
(NASDAQ: LULU) stock is down about 60% from highs set at the beginning of 2024. While the market is soaring on the back of artificial intelligence (AI) growth, Lululemon is faltering in a big way. Why? Because of slowing growth in North America. Wall Street is concerned the brand is losing its cachet with customers, facing more competition, and dealing with macroeconomic headwinds that will continue for years.
While some might be worried about the next quarter, smart investors stay focused on the next decade. Does the recent stock price pullback make Lululemon a buy at its current price around $200? The numbers point to a clear answer for investors.
Multiple headwinds hit Lululemon over the last two years. Some self-inflicted, others from a broader athleisure spending cycle. In 2024, Lululemon's new styles did not impress its core customer base, with management admitting recently it needed to be more nimble to adapt to changing customer trends. Competition has grown in athleisure with upstarts such as Vuori and Alo Yoga, which is a strong narrative among investors worried about Lululemon losing its customers. From a broad economic perspective, spending on athleisure and casual clothing as a whole has waned in recent years after a COVID-19 pandemic boost.
Source Fool.com
Lululemon Athletica Inc. Stock
Our community is currently high on Lululemon Athletica Inc. with 63 Buy predictions and 7 Sell predictions.
Based on the current price of 147.32 € the target price of 341 € shows a potential of 131.47% for Lululemon Athletica Inc. which would more than double the current price.
