Could Lululemon Stock Go From Bad to Worse Amid a 6.5% Increase in Wholesale Prices?
The brand's sales and margins are tanking amid weak consumer spending.
Could Lululemon Stock Go From Bad to Worse Amid a 6.5% Increase in Wholesale Prices?
Overview
Inflation remains a lingering headwind for consumer spending. The latest data shows the producer price index rising 6.5% year over year for May -- the highest increase since 2022. This isn't the news Lululemon Athletica (NASDAQ: LULU) wanted to hear, as higher prices for everyday essentials leave less money for discretionary items like apparel.
Lululemon's sales growth has slowed over the past two years, which coincides with the spike in inflation that began in the aftermath of the pandemic. The question is whether persistent inflation will continue to pressure its sales and margins, potentially sending the stock to fresh lows in the near term.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
