Jim Cramer Says Lululemon Is Executing Poorly, Sees $85 Downside

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โดย Insider Monkey·

Summary · why it matters

Jim Cramer said lululemon athletica inc. is executing really poorly and flagged a possible fall to roughly $85 from $103.19, where the stock closed on September 8, more than 50% below its 52-week high of $225.98. The warning follows a weak second quarter in which revenue fell 4% to $2.4 billion, comparable sales declined 9%, and Americas revenue fell 8% with comparable sales down 12%. Lululemon cut its fiscal 2026 revenue forecast to $10.35 billion-$10.50 billion from $11 billion-$11.15 billion and reduced EPS guidance to $9.48-$9.73 from $10.95-$11.15, while leggings sales fell approximately 20% in the quarter and its athleisure market share slipped to 43.9% in August as Alo Yoga and Vuori gained share. Interim Co-CEO Meghan Frank said the company expected a better response than it is seeing entering the second half of the year, and the company guided third-quarter revenue to $2.29 billion-$2.32 billion, a 10%-11% decline from a year earlier. Insider Monkey's tracking of more than 1,000 hedge funds shows 51 hedge funds held Lululemon in the second quarter, down from 61 in the first quarter, with Citadel Investment Group the largest holder after increasing its stake by 84% to 1.07 million shares, while short interest stood at approximately 9%-11% of the float.

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