Jim Cramer - Mad Money
LuLulemon Athletica (US)
LULU-Q
BUY
May 28, 2025
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.
(A Top Pick Sep 24/24, Up 22.4%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with LULU has achieved its target at $316. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $230) to $267.
Started the year at $520, then lost 50% of its value. Starting a recovery, but losing steam. A possibility, but be very careful. Not a lot of volume on the buying, certainly not as much as on the downside. Don't take a big position, $300 would be a good place to get out.
Tries to stay away from specialty retailers, though LULU might be an exception. Seems to have bottomed out and is coming back. Tough business. He'd rather own an AMZN.
Shares soared 16% today after reporting. China was a key driver. Inventories and loyalty program are doing well. An excellent quarter. They bought back a lot of shares.
(A Top Pick Sep 24/24, Up 35.5%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with LULU has triggered its stop at $367. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 42%, when combined with our previous guidance.
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.