The Bear Case Against Lululemon Athletica Inc.: Does It Hold Up?

Lululemon Athletica Inc. has had a rough year. Could it be time to part ways with the company?

Apr 5, 2014 at 10:30AM

lululemon athletica (NASDAQ:LULU) impressed Wall Street with its latest earnings numbers, but is that alone enough to continue holding shares of the company?

Motley Fool contributor Brian Stoffel has been a shareholder in the company for a number of years, but alhough the stock has performed very well since the onset of the Great Recession, there are lots of question marks surrounding the athletic-apparel company's future.

In the following video, find out why Brian is considering whether to sell his shares, and what he thinks about two of the biggest arguments investors use when talking about why they wouldn't invest in lululemon athletica.

2 stocks changing the retail world
There's no question that brick-and-mortar companies have been under a lot of pressure lately. Lululemon -- with its unique in-store experience -- has largely avoided some of the negative consequences of this shift. But that doesn't mean you can't still profit from the trend.

To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Source: MetsHat via Wikimedia Commons, Lululemon.

Brian Stoffel owns shares of lululemon athletica. The Motley Fool recommends lululemon athletica. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

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