This retail stock is 80% off its high. Cramer says it’s still not time to buy
CNBC’s Jim Cramer said the retailer remains in the doghouse.
TL;DR
- Jim Cramer advises against buying Lululemon stock, even after its significant price decline.
- He cites intense competition, weakness in international sales (especially China), and a bleak financial outlook.
- Lululemon's comparable sales fell 9% last quarter, with mainland China comps down 2% against expectations for growth.
- The company slashed its full-year sales and earnings forecasts.
- New CEO Heidi O'Neill has taken over, potentially benefiting from a 'kitchen sink quarter' set by previous leadership.
- Cramer wants to see stabilization, overseas momentum, and better competition before recommending a buy.
- He describes the stock as 'bleeding out in no man's land'.