It's been nearly three months since lululemon athletica (NASDAQ:LULU) had to pull its stock of black Luon yoga pants after the proprietary fabric was too see-through for some buyers. The retailer began restocking most of the styles that were removed this week, but it will pay the price.
Analysts see a dip in profitability and decelerating growth when the high-end retailer posts quarterly results next week. The key here -- as longtime Fool contributor Rick Munarriz points out in this video -- is the guidance that it provides on its near-term future.
Upscale chains are thriving these days. Michael Kors (NYSE:CPRI) posted blowout quarterly results last week, and handbag rival Coach (NYSE:TPR) boosted its dividend a week earlier. This should be a good time for Lululemon to bounce back, but it's going to have to prove that it's up to the task.