Lululemon Athletica inc.(NASDAQ:LULU) Is Now On Underperform Rating


Dallas, Texas 04/23/2014 (FINANCIALSTRENDS) –  Lululemon Athletica inc.(NASDAQ:LULU) shares have been in the middle of a massive slide on the trading session with the stock being rated by analysts as Underperform. The company with diverse products has been losing out with its range of apparel line. It was in the middle of crisis with the company having to recall pants that it had offered for yoga practitioners. Called as Yoga-pants, the stock has been losing customers, given the range of recall of pants.

Lululemon AthleticaInc.(NASDAQ:LULU) has now been reviewed by Sterne Agee and the conclusion has been that the company has been an Underperformer. The stock following the announcement of the rating has reported a complete downward slide, with the rates reaching $48.25 per share.

Lululemon AthleticaI Inc.(NASDAQ:LULU) has been downgraded largely because of the lack of long as well as short term financial goals, from the company. Accordign to Sam Poser, from Sterne Agee, the company has failed to mention in clear terms its strategies for the near future.

With fall in number of users, the company has been reporting a massive drop in not just members but investor good will as well. The lack of clarity by the retailer has set the cat amongst the analyst and they are now keen on finding the best possible updates on the method to acquire new customers.

Lululemon has been on HOLD for some time now. Now, with TheStreet Ratings holding out, the company will now receive further attention. The stock has been rated thus as it lacks growth in revenue. On the other hand, the company currently does not boast of any type of debt, allowing the company to achieve balance in debt-to-equity ratio of zero.

The net growth in income for the same quarter is much higher than that of the industry indicating higher range in performance.