Lululemon Stock Hits 52-Week Lows After C-Suite Shakeup

Analysts are wary of the athletic retailer's latest moves

Deputy Editor
May 22, 2024 at 10:47 AM
facebook X logo linkedin


The shares of Lululemon Athletica Inc (NASDAQ:LULU) are down 7.2% to trade at $299.86, and earlier hit a 52-week low of $298.64, after the resignation of the athletic retailer's chief product officer. The company will not replace the role, instead creating a new team comprised of merchandising and brand functions leaders. 

The news came as a surprise, and sparked warning bells amongst analysts. Jefferies noted the adjustments could suggest weaker top-line results over next few quarters. Wedbush slashed its price target to $397 from $492, while UBS trimmed its target to $385 from $475. 

LULU is now down 41.3% year-to-date. The shares are heading for a sixth-straight loss, the worst losing streak in exactly one year. During this drawdown, short interest has declined 14.7% over the last month, yet the shares have failed to capitalize, highlighting the underlying technical weakness. Should the stock slink even lower, don't be surprised if more bear notes come in, considering only two of the 26 brokerages covering LULU have "sell" or worse ratings.

Over in the options pits, 24,000 calls and 23,000 puts have exchanged hands so far today --  2.3 times the average daily options volume already. The weekly 5/24 290 and 300-strike puts are the most popular, with new positions opening at both. 

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI