Please ensure Javascript is enabled for purposes of website accessibility

Today's Movers and Shakers in the World of Retail: Lululemon, Under Armour, and Crocs

By Matt Thalman – Feb 18, 2014 at 10:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A look at three retailers and why their shares were up, down, or sideways today.

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Retail stocks can be a lot like the merchandise and the sales of the companies they represent -- in constant fluctuation. In this column I like to point out a few notable daily moves from the big retail stocks and help investors figure out whether they should buy, sell, or hold. Today's movers and shakers: lululemon athletica (LULU 0.17%), Under Armour (UAA 0.21%), and Crocs (CROX -1.78%).

This stock wasn't a lemon today
Shares of Lululemon rose 0.72% today and another 0.45% in the after-hours session following an analyst upgrade today. Oppenheimer raised its rating from "perform" to "outperform" and increased its 12- to 18-month price target to $63. Based on today's after-hours session closing price of $51.65, that would represent a nearly 22% increase. That would be a healthy price appreciation, but even though I'm a shareholder, I'd keep this stock at a hold. The growth Lululemon would need to justify that valuation is going to be difficult to pull off. The new management team has a long road ahead, and I'm going to hold my shares for now, with plans to re-evaluate my position in a few quarters.  

Investors don't need protective armor here
I also own shares of Under Armour, whose new uniforms were taking the blame for the U.S. speed-skating team's poor performance in the Olympics. Over the weekend, the skaters in Sochi switched back to an older Under Armour uniform, but the poor performance continued. Investors seem split over whether the controversy is good for the company, but I think the stock and the company will both be fine when the dust settles. After trading as low as $103.00, the stock closed today at $107.46, an increase of $1.46, or 1.38%. I rate the stock a buy, and maybe other investors are coming around to the same opinion.

A dangerous animal to mess with
Finally, shares of Crocs dropped 3% today. The move comes on very little news, though the company is expected to report earnings tomorrow. Analysts are expecting revenue to come in at $221.24 million, which would be a 1.7% sales drop from last year, and for earnings per share to hit negative-$0.22, down from a positive-$0.04 reading. The only good news is that if results meet the dreary estimates, it could limit some of the downward pressure on the stock. But I never like to trade within a few days of an earnings release, because of the added volatility, so for now I'd rate this stock as a hold.  

Matt Thalman owns shares of lululemon athletica and Under Armour. The Motley Fool recommends lululemon athletica and Under Armour and owns shares of Crocs and Under Armour. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lululemon Athletica Stock Quote
Lululemon Athletica
$361.16 (0.17%) $0.63
Under Armour (A Shares) Stock Quote
Under Armour (A Shares)
$9.67 (0.21%) $0.02
Crocs Stock Quote
$94.91 (-1.78%) $-1.72

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.