It seems an understatement to say shareholders of lululemon athletica (NASDAQ:LULU) have had a rough week so far.
The stock kicked off the week with a 17% plunge after Lululemon lowered its fiscal fourth-quarter 2013 revenue and earnings guidance. What's more, you can bet that much of Lululemon's current weakness stems from a combination of offensive comments from company founder and former Chairman Chip Wilson, uncertainty revolving around new CEO Laurent Potdevin, and the lasting repercussions of a massive pants recall last spring.
But according to the Fool's Steve Symington in the following video, Lululemon is facing a much larger problem over the long term. Specifically, Steve says, in order to effectively compete with the likes of Under Armour (NYSE:UA) and Nike (NYSE:NKE) on a global scale, Lululemon needs to convince investors its market opportunity extends beyond that of a mere yoga apparel company.
Luckily for shareholders, management just revealed two particularly encouraging bits of information that indicate it intends to do just that. To hear what they are and for Steve's full take, check out the video below.
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Steve thinks Lululemon has what it takes to reward patient investors over the long term, but that doesn't mean it's the only promising investment out there.
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Fool contributor Steve Symington owns shares of lululemon athletica and Under Armour. The Motley Fool recommends lululemon athletica. It recommends and owns shares of Nike and Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.