Should You Buy Lululemon Stock ahead of Earnings Report?
Lululemon Athletica is due to report on quarterly earnings, and it does not look good for the company.
Sportswear company Lululemon Athletica (LULU) is going to publish its earnings report on Tuesday, and the company’s stock is dropping before the report’s release.
LULU’s shares have dropped in value by 42% from December 2023, where the company enjoyed its all-time high. 2024 has proven to be a tough year for the athleticwear brand, with a 7% dip on Wednesday, about a week ahead of the earnings report.
Lululemon’s stock is down another 1.13% today, just one day before the company will reveal how it performed for the quarter. The bad news is that this is the lowest the stock has been all year, and expectations are low for the stock moving forward. No one seems to be hopeful about the stock’s chances for the quarterly report, and investors may want to sell fast.
Could Lululemon Recover?
The prognosis on the athleisure company is that we may be hearing its death knells with each new quarterly report. The clothing style seems to be dropping out of fashion, with too many choices glutting the market and Lululemon not standing out as a strong competitor anymore.
It appears that athleisure may be nearly finished as a fashion trend as early as next year, which is when some analysts predict that Lululemon will implode.
Common sense says to sell this stock before it dips any lower, because few analysts are holding out hope that the company will be able to turn things around. We do not recommend that investors try to buy this stock while it is low. Although some fashion blogs say that athleisure will turn around, that does not mean that Lululemon will survive. The once trendy company has fallen out of favor and has experienced incredibly poor stock performance for the past five months. The new quarterly report is likely to only make the situation worse, especially if the upcoming economic data for this week is negative, which includes Vehicle Total Sales, and ISM Manufacturing PMI.
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