Jim Cramer, Lululemon'un (LULU) Başka Bir Acımasız Çeyreğin Ardından "Tarafsız Bölge" de Olduğunu Söyledi

Jim Cramer Says Lululemon (LULU) is in “No Man’s Land” After Another Brutal Quarter

Syeda Seirut Javed

Tue, September 15, 2026 at 12:37 PM GMT+3 4 min read

• LULU +1.34%

Jim Cramer says lululemon athletica inc. (NASDAQ:LULU) has gone from a premier growth stock to a company facing a serious deterioration in demand, competition, and execution. After its latest results, Cramer said investors should resist buying the stock simply because its valuation has fallen sharply. During the September 10 episode of Mad Money, he said:

In less than 3 years, LULU's gone from one of the greatest growth stories ever told to a thoroughly broken stock and maybe, maybe, just maybe, a broken company.

The company's second-quarter results support the concern. Revenue fell 4% year over year to $2.4 billion, while comparable sales declined 9%. Americas comparable sales fell 12%, and international comparable sales declined 3%. The company also cut its full-year revenue forecast to $10.35 billion-$10.50 billion and diluted EPS outlook to $9.48-$9.73.

Cramer Sees a Structural Competitive Problem

Cramer said that lululemon athletica inc.'s (NASDAQ:LULU) difficulties are no longer limited to a temporary slowdown. He pointed to a much more crowded athleisure market, saying that "10 years ago there was Lululemon and not much else," while the company now faces Alo Yoga, Vuori, Athleta, and Fabletics. He added:

It's very hard to sell apparel at premium price when demand is waning, and your competitors are out for blood, and there is excess inventory flying all over the place.

That pressure is significant because the company is simultaneously trying to restore growth in its largest market and protect premium pricing. Cramer also sees execution and leadership problems adding to the pressure. Heidi O'Neill, a Nike veteran, became CEO on September 8 after an extended transition.

A Large Earnings Beat Does Not Resolve the Problem

lululemon athletica inc. (NASDAQ:LULU) reported diluted EPS of $2.92, but $0.86 of that came from tariff refunds and related interest. The company received $134.5 million in tariff refunds, while gross margin benefited by 560 basis points from the refunds. Cramer commented:

Buying Lululemon because it's cheap has been a sucker's game all the way down because they keep cutting numbers.

He said the latest quarter could have been a "kitchen sink quarter" that cleared out bad news before the new CEO took over. But he remains unwilling to buy.

If these guys can put up any kind of positive surprise, the stock would be able to rally aggressively. In other words, I think it's too risky to short this one, but I still can't be a buyer either.

Hedge Fund Ownership Falls as Short Interest Rises

Insider Monkey's tracking of more than 1,000 hedge funds showed that 51 hedge funds held Lululemon in the second quarter, down from 61 in the first quarter. Short positioning has moved in the opposite direction, as short interest stood at roughly 11%-13% of the float. Cramer acknowledged that lululemon athletica inc.'s (NASDAQ:LULU) valuation has fallen dramatically, but said a lower multiple is not enough while earnings estimates continue to move lower.

The bottom line: For the time being, I can't give you a good reason to buy Lululemon even after these stunning declines other than the kitchen sink thesis and the fact that the stock now appears to have a low price-to-earnings multiple. See, that's not good enough though.

For now, Cramer sees the stock as a turnaround situation that needs evidence of improving demand and execution before the valuation becomes compelling. His verdict was:

This stock is bleeding out in no man's land. Don't try to be a hero and buy it. Just try to rubberneck and then move on.

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