lululemon: A 56% YTD Drop And Still No Catalysts In Sight

Summary

• lululemon athletica's Q2 earnings revealed weak US sales, product fatigue, and tariff pressures, leading to lowered guidance and a sharp stock decline.
• International growth remains strong, but it's not enough to offset North American weakness; a recovery in North America is crucial for a sustained rebound.
• lululemon's stock valuation is historically low, but with no clear near-term catalyst, the stock may remain stagnant despite its strong brand and financials.
• Given limited short-term visibility and ongoing challenges, I rate LULU as a Hold. It's a "show-me" story for now.