To The Moon

As I look at the recent news about Lululemon $Lululemon Athletica(LULU)$  , I can see why there's concern. The company has taken a significant hit, dropping back to 2020 lows after slashing its earnings outlook and projecting a $240 million tariff impact. It's tough to see a brand I've admired struggle, especially with a 56% year-to-date loss and a 20% drop in a single day during the last earnings report. The tariffs and the removal of the de minimis exception are clearly weighing heavily on their sales, which makes me pause and think about the risks involved.

When it comes to deciding whether I'd buy the dip, I'm hesitant. Lululemon topped second-quarter earnings estimates, which is a positive sign, but the slight miss on revenue expectations and the ongoing tariff issues suggest uncertainty ahead. A 56% drop year-to-date is alarming, and while dips can sometimes be opportunities, I'd need more confidence in their ability to navigate these challenges before investing. I don't have enough current data to predict a turnaround, so I'd likely hold off on the stock for now unless more favorable trends emerge.

That said, I do love Lululemon products. The quality and design of their activewear have always stood out to me, and I've been a fan for years. If I were to choose between investing in their stock or buying their products, I'd lean toward purchasing something like a new pair of leggings or a jacket. It feels like a safer way to support the brand while enjoying what they do best, rather than betting on the stock's recovery in this shaky climate.

The competition from Alo also seems to be a factor, as the post mentions their impact alongside the tariff issues. This makes me wonder if Lululemon's market position is eroding, which could further complicate a stock investment. I'd rather put my money into something tangible like their gear, where I can see and feel the value directly, rather than gambling on a recovery that might not happen soon.

If I were to consider the stock again, I'd want to dig deeper into their strategy for handling tariffs and how they plan to regain momentum. Without that insight, I'm inclined to sit tight and watch how things unfold over the next few quarters. For now, my choice is clear—I'd opt for Lululemon products over their stock, enjoying the brand in a way that feels less risky.

Ultimately, this decision reflects my preference for tangible enjoyment over speculative investment right now. I might revisit the stock idea later if the company shows signs of stabilizing, but as of today, I'm more comfortable buying a piece of their apparel than taking a chance on the market dip.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.

@TigerStars  @Tiger_comments