Sinking 48%, Is Lululemon a Buying Opportunity?
(NASDAQ: LULU) is in an odd state of change. The athletic apparel company has been slowing down for a few years now. From fiscal 2022 onward, annual revenue growth has been declining, leading the stock to be rather volatile, with shares ultimately falling 48% year to date. Lululemon makes a good product, but this might not be so much about Lululemon being a good company as much as it is about market competition, and ultimately pricing, which might be making it harder for Lululemon to grow.
Most recently, the company relied on a declining share count to make earnings per share better than they would have been, as net income declined through the first six months of fiscal 2025. Through the first two quarters of the year, net income was down 4% year over year to $685.47 million. In all, dliluted earnings per share were basically flat for the first six months of the fiscal year and declined by 1.5% to $3.10 through the fiscal second quarter. Earnings in the second quarter would have been worse were it not for the 4% decline in diluted outstanding shares.
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Source Fool.com
Lululemon Athletica Inc. Stock
Currently there is a rather positive sentiment for Lululemon Athletica Inc. with 53 Buy predictions and 6 Sell predictions.
With a target price of 323 € there is a hugely positive potential of 84.95% for Lululemon Athletica Inc. compared to the current price of 174.64 €.
