Lululemon's Valuation Conundrum: A Recipe for Caution Lululemon athletica inc. 's latest earnings report has left investors scrambling, as the company's valuation continues to defy logic.
Despite a 4% decline in net revenue and a 10% drop in comparable sales on a constant dollar basis, Wall Street remains hesitant to call the stock cheap enough to buy.
The market may be underestimating lululemon's resilience, however. The company's community pull remains strong, as evidenced by the successful return of the SeaWheeze Half Marathon and Festival.