LULU store sales are declining even as buybacks, new stores, and tariff refunds provide some offset. Weak same-store momentum plus soft consumer spending creates negative near-term sentiment for the stock. Short-term bearish bias on LULU after earnings; author explicitly expects the stock to move lower. Store sales alone are not the whole profit picture; fashion stocks can rebound quickly; broad recession call is unproven.
LULU store sales are declining even as buybacks, new stores, and tariff refunds provide some offset. Weak same-store momentum plus soft consumer spending creates negative near-term sentiment for the stock. Short-term bearish bias on LULU after earnings; author explicitly expects the stock to move lower. Store sales alone are not the whole profit picture; fashion stocks can rebound quickly; broad recession call is unproven.