Lululemon Athletica Aktie News

The U.S. economy is slowing, which is bad news for consumer stocks. In recent days, economic data showed that gross domestic product (GDP) in America grew at an annualized rate of 1.6% in the year's first quarter, considerably slower than the preceding quarter's 3.4% growth.

Lululemon stock plunged into a bear market as investors worried about the impact of a steep slowdown in 2024. LULU isn't priced at a discount. Therefore, the market's discontent over its weak guidance is justified. However, LULU's stock buying sentiment has improved over the last two weeks, suggesting the worst could be over.

After the skinny jean's nearly two-decade reign, retailers and clothing makers — like Levi Strauss & Co., Abercrombie & Fitch Co., and American Eagle Outfitters Inc. — say looser fits are getting more popular. Barclays analysts on Monday said that's unwelcome news for two categories that prevailed during and after pandemic lockdowns: athleisure and beauty.

Barclays analyst Adrienne Yih downgraded athleisure maker Lululemon. Trend cycles for years to come don't look kind.

Summer is around the corner, meaning fashion stocks are well-aligned. Sure, the “sell in May, and go away” stock market anomaly is worth considering.

Nike has been a terrible investment in recent years, and it's dealing with demand weakness. Lululemon regularly posts higher margins, and it has greater growth potential.

Not all stocks have succeeded in the bull market that began about 18 months ago. In the current market, a rising tide has not lifted all boats.

Given the stickiness in inflation, avoiding consumer discretionary stocks like athleisure is more prudent. However, with U.S. retail sales showing remarkable resilience in the past few months, you should consider betting on the best athleisure stocks.