lululemon athletica inc. (NASDAQ:LULU) was among the stocks Jim Cramer discussed on Mad Money, along with the recent sell-off in the market.
Cramer noted that the company’s quarter was “disappointing,” as he said: Last night, lululemon reported yet still one more disappointing quarter, and the stock got crushed today, tumbling more than 8%
At this point, I’m no longer surprised when LULU misses numbers… A few years ago, athleisure was one of the, it was the best consumer trend out there… Once COVID hit, athleisure practically became the uniform of the pandemic. Maybe that made this trend look more durable than it really was… The bigger problem, though, is competition, and that goes double for Lululemon. A few years ago, LULU felt unique.
Now, everyone makes trendy workout apparel and performance clothes… At the end of the day, Lululemon is not Louis Vuitton. They may have a great brand, but if people can get similar stuff for less money elsewhere, then they’re going to go elsewhere… You can see the shift in the numbers. On the surface, lululemon’s latest quarter was, it wasn’t a disaster, although expectations were pretty low.