1 Retail Stock in Trouble

The following video is from Tuesday's Investor Beat, in which host Chris Hill and analysts Jason Moser and Charly Travers dissect the hardest-hitting investing stories of the day.

First-quarter earnings for lululemon athletica  (NASDAQ: LULU  )  came in better than expected. With same-store sales rising 7% for the quarter, the popular maker of yoga wear appeared to have put its recent troubles in the rearview mirror. But shares plunged today on the news that CEO Christine Day is resigning. In her five years at the top, Lululemon has grown steadily and shares of the stock have risen more than 400%. In the lead story from today's Investor Beat, Motley Fool analysts Charly Travers and Jason Moser discuss whether the next CEO will fare as well or if increased competition means the troubles are only beginning for Lululemon.

Lululemon has the potential to grow its sales by 10 times if it can penetrate its other markets like it has in Canada, but the competitive landscape is starting to increase. Can Lululemon fight off larger retailers and ultimately deliver huge profits for savvy investors? The Motley Fool answers these questions and more in its most in-depth Lululemon research available. Thousands have already claimed their own premium ticker coverage; gain instant access to your own by clicking here now.

The relevant video segment can be found between 0:18 and 2:29.


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  • Report this Comment On June 11, 2013, at 7:54 PM, LQM2 wrote:

    I can think of only two execs who might be considered "irreplaceable"...Steve Jobs and Warren Buffett. Day is burnt out and somebody else is probably more up to the task of expanding. Seems like a great buy spot.

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