Lululemon Stock Falls to $100: Has It Become a Bargain Buy?

Jim Cramer criticized lululemon athletica inc. (LULU) after its Q2 results, citing demand deterioration, competition, and execution issues. Revenue fell 4% YoY to $2.4B, and comparable sales declined 9%. LULU cut its full-year revenue forecast to $10.35B-$10.50B and EPS outlook to $9.48-$9.73. Cramer warned against buying the stock due to structural competitive problems and leadership changes.

Tilly's (TLYS) reported $163.5M revenue, up 8.1% YoY, beating estimates and raising guidance. Its stock rose 18.1%. Lululemon (LULU) reported $2.42B revenue, down 4.3% YoY, missing estimates and guidance, with its stock falling 18.7%. Gap (GAP) reported $3.65B revenue, down 2% YoY, missing estimates but raising full-year EPS guidance, with its stock up 3.5%. Abercrombie & Fitch (ANF) reported $1.27B revenue, up 4.8% YoY, beating estimates and raising guidance, with its stock up 34.8%.

Lululemon reported a 4% revenue decline in Q2, with comparable sales down 10% globally. The company expects a 10-11% revenue drop in Q3. Shares fell 17% after-hours, hitting a 52-week low. New CEO Heidi O'Neill, a former Nike executive, starts September 8, aiming to drive growth.

Lululemon's new CEO, Heidi O'Neill, takes over as the company faces declining sales and market share. Q2 revenue fell 4% to $2.4B, with leggings sales dropping 20%. Full-year guidance was cut, with revenue now expected to decline 5-7%. Competitors like Alo Yoga and Vuori are gaining market share, and Lululemon's stock has lost over half its value in a year.

Lululemon (LULU) reported a 4% revenue drop to $2.4B, with comparable sales down 10%. Full-year guidance was cut again, citing struggles in North America and China. Leggings sales fell 20%, but some product lines and events showed growth. Rest of World revenue rose 5%.

Jim Cramer called Lululemon (LULU) a 'thoroughly broken stock,' citing a 52% YTD decline and 77% drop over five years. The company projected Q3 revenue to fall 10-11% with EPS of 93-98 cents, down from $2.59 a year ago. Cramer attributed the struggles to intense competition in the athleisure market and declining women's leggings sales. LULU's Q2 revenue was $2.42B, down 4.3% YoY, with global comparable sales falling 9%.