Looking at opinions across Wall Street of lululemon athletica inc. (NASDAQ: LULU), it seems clear that the stock is in trouble. Not only do shares have just a single Buy rating compared to 27 total Hold or Sell ratings, but recent weeks have brought an onslaught of lowered price targets and reiterated negative views of the stock. Investors subscribing to these same beliefs might see headwinds like slowing growth in Asia, a major leadership change with a new CEO in September, and poor visibility in the company's attempts at making a turnaround.
Expanding the view to encompass a broader cross-section of the premium athletic and apparel brands space, though, it may become clearer that companies working in the same consumer environment can nonetheless yield totally different results. Investors looking for industry-wide issues might be inclined to view lululemon's company-specific problems as indicative of other concerns, whether or not they actually exist.
