Lululemon Athletica Hits New Low, 'Lacks Catalyst'
Lululemon Athletica (NASDAQ: LULU) shares hit a new 52-week low Friday after a 16 percent plunge a day earlier on news that the yoga-wear retailer cut its 2014 outlook and posted a mere one percent uptick in same-store sales for the recent quarter.
Robert Baird downgraded the shares to Neutral, from Outperform, saying the company "lacks near-term catalysts."
"Everything is going the wrong way," Belus Capital analyst Brian Sozzi told Barron's recently.
On Wednesday, company founder and 27 percent stakeholder Chip Wilson said the company's recently installed chairman Michael Casey and director RoAnn Costin are too focused on short-term results. Wilson voted not to re-elect the pair, although they prevailed.
Wilson was associated with a major faux pas last year, after the company recalled a series of mistakenly see-through yoga pants. Wilson appeared to blame customers' thighs for the problem, and was forced to step down along with CEO Christine Day.
The company is now going after mens' wear.
Luluemon traded recently at $36.92 a share, down 0.89 percent.
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