Jim Cramer Calls Lululemon a 'Thoroughly Broken Stock,' Citing 52% Year-to-Date Drop and Weak Q3 Outlook
Jim Cramer stated on his September 10 Mad Money segment that Lululemon (NASDAQ:LULU) is a "thoroughly broken stock" and he sees no compelling reason to buy it. The stock is down 52% year-to-date and 77% over five years. Lululemon's Q3 guidance projects revenue declining 10-11% with EPS of 93-98 cents, significantly lower than $2.59 a year ago. Cramer attributed the decline to fierce competition in the athleisure market, which has led to a roughly 20% drop in women's leggings sales in Q2.
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