Athletic apparel company Lululemon Athletica Inc. (LULU) has hit rock bottom in the broader S&P 500 Index ($SPX) this year - or close to it, at least. While Walgreens (WBA) is officially the worst-performing SPX component of 2024 - particularly after today’s poorly received earnings report - LULU is the worst performer among the S&P 500 that still has a consensus “Buy” rating from analysts, compared to a “Hold” for WBA. But should you actually buy LULU stock?
The slowdown in Lululemon's sales over recent quarters has ignited fears among investors that the company is losing its brand power amid rising competition. Amplifying these concerns was the departure of Chief Product Officer Sun Choe in May, a pivotal figure in Lululemon’s successful expansion into footwear.
