Stock price when the opinion was issued
It peaked in 2023 and got clobbered last year. Then, it got hit with tariffs and shares sank again. Is -25% since last January. It reports next week. Last March's report was actually okay, beating sales and earnings. But we expected that because the company pre-announced results. That's why the street punished it for weak guidance. He remains hopeful, because he expects the 46% tariff on Vietnam, which makes a lot of LULU product, will face a much lower tariff. However, shares have rebounded 18% the past month. They have a strategic plan focused on product innovation, guest experience and market expansion. Expectations are low for this quarter with even some analysts expecting an upside surprise in earnings and same-store US sales. He likes this set up and would buy now.
Our PAST TOP PICK with LULU is progressing well. To remain disciplined, we recommend trailing up the stop (from $310) to $367 at this time.