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Lululemon Takes a Down Road in a Month: Should You Buy?

lululemon athletica inc. (NASDAQ: LULU), a distinguished name in the athleisure and high-performance sportswear world, has often been lauded for its innovative products and strong brand loyalty. However, the stock recently experienced a notable dip in the past month, prompting investors to question whether now is the ideal time to buy. lululemon's share price has experienced a downward trend, shedding a notable percentage in the past month. lululemon's share price has rolled down 7% in the past month, the broader industry has dropped 6.6%, and the Consumer Discretionary sector has declined 0.5%. The stock also traded shy of the S&P 500's gain of 3.6% in the same period. Image Source: Zacks Investment Research At the current price of $300.32, the stock trades closer to its 52-week low of $293.03 reached on May 28, 2024. The current stock price reflects a 42% discount from its 52-week high mark of $516.39. Furthermore, LULU is trading below its 50 and 200-day moving averages, signaling potential bearish sentiment in maintaining recent performance levels. lululemon's Stock Trades Above 50 and 200-Day Moving Average Image Source: Zacks Investment Research Understanding the Recent Decline The recent stock decline follows lululemon's latest Jun 5 earnings report, highlighting slightly lower-than-expected revenue growth and cautious guidance for the upcoming quarters. While generally positive, the company's recent earnings report gave investors many reasons to mull over, including LULU losing its foothold in the core America market. Investors noted that LULU's revenues improved by just 10% in the recent quarter, much below the 24% revenue growth recorded in the year-ago quarter. This marks a notable decline from the company's double-digit revenue growth trend that the investor community is used to witnessing. lululemon attributed some of these challenges to inventory shortages in key product lines, such as popular bag designs and essential apparel sizes and colors, particularly in the United ...