5 Reasons Lululemon Stock Can Bounce Back
Of all 500 companies on the S 500, none have done worse this year than Lululemon Athletica (NASDAQ: LULU).
It's been a truly awful year for the leading athleisure and exercise apparel company, as the stock has fallen 56% year to date. It's fallen by double digits in all three of its earnings reports this year, including by 19% just last Friday, Sept. 5, as it slashed its full-year earnings per share guidance from $14.58 to $14.78 to $12.77 to $12.97.
The company is facing challenges both internal and external. Management said that much of the reason for the reduction in guidance was because of the removal of the de minimis exemption on imports, which had allowed shipments of less than $800 to avoid tariffs. That enabled the company to ship e-commerce orders to the U.S. from Canada, where it's based. It's now reorganizing its distribution network to avoid that tax.
Source Fool.com
Lululemon Athletica Inc. Stock
Currently there is a rather positive sentiment for Lululemon Athletica Inc. with 63 Buy predictions and 5 Sell predictions.
With a target price of 345 € there is potential for a 133.9% increase which would mean more than doubling the current price of 147.5 € for Lululemon Athletica Inc..
