Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The No. 1 Problem Facing Lululemon Right Now

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.

The 3 stocks in this free report could help you retire wealthy
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.

It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free repor "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2797937, ~/Articles/ArticleHandler.aspx, 9/3/2015 9:02:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,351.38 293.03 0.00%
S&P 500 1,948.86 35.01 0.00%
NASD 4,749.98 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:00 PM
LULU $65.36 Down +0.00 +0.00%
Lululemon Athletic… CAPS Rating: ***
NKE $110.70 Down +0.00 +0.00%
Nike CAPS Rating: *****
UA $95.64 Down +0.00 +0.00%
Under Armour CAPS Rating: ****