First, lululemon. Lululemon announced its earnings yesterday, let's dive into those numbers, okay? If you only look at the raw figures, you would say they fell short of revenue by approximately 1.7% .
But look at these profits, earnings per share. They achieved an almost 63% advantage. They exceeded expectations by 63%. Why are Lululemon's stock prices falling? It needs to rise sharply now.
Well, the truth is that these numbers are somewhat misleading. This is misleading because earnings per share take into account the reimbursement of amounts based on previously paid tariffs.
Therefore, these are one-time payments and not an indicator of true total profits. In addition, you know, although their profits are not the real number, they still exceed profit expectations.
But what matters more is that they have significantly lowered their expectations. Basically, their expectations for the future are much lower, aren't they? This caused the stock to open down by nearly 20%.
It saw a good rebound, didn't it? But for me, Lululemon stock is trading at levels we haven't seen in a long time. If the price continues to fall, look at all the support levels here around $82.
This is the area where I would look to buy some shares if Lulu continues to fall.