Stocks to Sell: Lululemon (LULU)
Click to Enlarge Yoga pants maker Lululemon (LULU), which still is reeling from that see-through pants debacle, is under pressure here as retailers overall have big question marks over their heads: Was the wintertime slowdown weather-related, or the symptom of a more serious pullback by consumers?
It doesn’t help that LULU is guiding a low-single-digit decline in Q1 same-store (less online) sales as it tries to revamp its product lineup.
Shares are dropping out of a four-month-old bear flag pattern as prices drop to levels not seen since early 2011.
I’ve recommended the May $47.50 puts to my Edge Letter Pro clients.