I think for a couple of years LULU’s bottom has been a frequent topic of discussion on here as the stock has continued its decline despite a very solid balance sheet.
Of course, if the brand is dying and people don’t want to wear Lululemon anymore then the current balance sheet is pretty irrelevant as it would eventually collapse.
Still, it seems to me that there are TWO major reasons why the stock is currently trading for $135 ish and not in the $170-180 range. CEO dissatisfaction and founder vs board proxy battle.
If they sort their quarrels out I’m sure the stock will go right back to $170-180. To get substantially higher than that let’s say $250 they would need to show growth in North America again.
China and International are doing very well. North America has stalled.
Thoughts?
For the 107th time…. Is this the bottom for LULU?
byu/lies_are_comforting instocks
Posted by lies_are_comforting
5 Comments
Maybe. Maybe not.
no more unique designs and quality has gone downhill so much…. RUN
Don’t know if it’s the bottom but that company’s appeal has run its course. Next stop Marshalls.
The new ceo choice seems absolutely moronic. Also having chip wage a propaganda war against the company cannot help it.
I think there’s further to fall. If it gets to $100 or less I’ll probably start buying in. It’s hard to jump in though when I’ve been following it for almost 3 years and it’s gone down almost the entire time lol.
1000s of better companies you can invest in without the overhanging risk/uncertainty. Why stress yourself over an investment that has already hurt you more than once