Bearish Trade Call for Lululemon (LULU)

13 days ago

"The second one is Lululemon, which I told you guys to avoid in my last video. Its trading at $167 per share and down 55% year to date, with comparable sales dropping to 1% and a massive disappointment in guidance. The CEO even admitted that the company has become too predictable in its casual offerings, missing key trends. I think Lululemon has the potential to be a trap because you cant really predict consumer preferences, and personally, Im not touching it."

The speaker issues a bearish trade call on Lululemon (LULU), citing its significant decline (55% YTD), falling comparable sales, and acknowledged stagnation in product trends by the CEO. Despite the stock trading at an attractive valuation, the uncertainty around consumer trends and market dynamics makes it a potential trap, leading the speaker to avoid investing in it.

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