Is Now the Time to Buy Lululemon?
Shares of lululemon athletica are down more than 10% today, despite the company meeting revenue expectations and exceeding earnings expectations this past quarter. Motley Fool One analyst Jason Moser thinks the reason for the dramatic decline is the company's forward guidance -- Lululemon guided modestly downward for top-line sales. But Jason thinks investors should be more worried about Lululemon's production issues, which have hurt its margins, as well as heavy competition. Jason doesn't think today's the day to buy Lululemon --he doesn't like that it's stuck in a niche and doesn't have as much of a market opportunity as a competitor like Under Armour may have.
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The article Is Now the Time to Buy Lululemon? originally appeared on Fool.com.
Jason Moser owns shares of Under Armour. Mark Reeth has no position in any stocks mentioned. The Motley Fool recommends lululemon athletica and Under Armour. The Motley Fool owns shares of Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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