Jim Cramer - Mad Money LuLulemon Athletica (US) LULU-Q BUY May 28, 2025

 It reports Thursday. Many short-sellers are betting they won't sell enough because of their high prices, but this is a remarkable company.

At 17x PE, this is frantically trying to bottom. You can put a small position on this now.

It reports Thursday. Are doing a ton of  business in China. Shares are too cheap now.

Is very surprised shares tanked after reporting (he had recommended buying before the report). They had a bad conference call and quarter. Everything went wrong for them, including tariffs. He expects a corporate shake-up.

It was very sold off so she bought it and sold in December for a 36 to 37% return and not a long hold time. It is now oversold even with the recent guidance cut. She doesn't like the discretionary space but there could be some upside.

Used it as a trading opportunity. Exited back in December when her team saw some weakness in the consumer. Sales grew 21% in China and 20% elsewhere. Margins held up despite inventory headwinds. Pricing power remains strong. Trades below 17x forward PE compared to 5-year average of 27x, undervalued again. Zero debt, lots of cash.

Cautious now, but back on her radar.

Average down? Shares are -43% for the year, so it's tricky, but you can buy modestly now to your holding.

He sold in December/24 since it got to their price faster than expected. There is some tariff noise around it. Same store sales in the U.S. haven't really grown in 2 years so it's best to wait.

Under pressure from tariffs and overseas manufacturing, now good value around 14x PE compared to its history. Based in Canada, but about 80% of sales from US. No dividend.

You could look out to September and sell a $195 put and get ~$11. Gives you $7 of downside protection before hitting the strike. If stock continues to drop, you buy it there minus the $11 you collected. If stock doesn't drop, you've made close to 6% over 1.5 months. Reports early September.