lululemon Q2: Why I'm Not Touching This Even After The 19% Drop

Kenio Fontes 3.15K Followers Follow Summary lululemon athletica inc. faces severe de-rating after weak Q2 results, with a 19% post-earnings selloff and single-digit valuation multiples. LULU's Q2 revealed a 4% revenue decline, -10% comparable sales, and a significant 8% drop in Americas sales, highlighting competitive and macro headwinds. EPS outperformance was driven by one-off tariff refunds; underlying margins and earnings are notably weaker than headline results suggest. I maintain a Hold rating on LULU, as the turnaround path is uncertain despite a cheap valuation and some international growth potential. Getty Images It has been a while since my lululemon athletica inc. ( LULU ) article . At that time, I didn't think the company was bad or anything like that; actually, I recognized some positive points such as a not-bad valuation, premium brand, and This article was written by Kenio Fontes 3.15K Followers Follow Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.