Skip to contentHome page Seeking Alpha - Power to InvestorsCanadaOct 20, 2026, 6:19 AM ETlululemon athletica inc. (LULU) StockNKEAtilla Zambito289 FollowersLululemon is rated Hold as deteriorating fundamentals and brand challenges outweigh its low valuation.Comparable sales declined 10% in Q2 FY26, with Americas down 12%, highlighting weakening core business despite ongoing store expansion.Gross and operating margins compressed significantly, with EPS guidance implying a 35% decline versus last year, reflecting higher costs and weak top-line trends.Turnaround hinges on new management restoring product quality, innovation, and brand equity, but visibility on stabilization remains low for now.winhorse/iStock Unreleased via Getty ImagesLululemon is widely discussed among value investors. The company trades way below its historical average, has a debt free balance sheet with 1.4 billion in cash, and owns the largest athleisure brand in the world. At first sight, thisThis article was written byAtilla Zambito289 FollowersValue investing has been my main passion for more than a decade. I look for businesses the market has given up on but that still have strong fundamentals, often trading at single digit P/FCF, though I'll pay up to 15-20x for genuine quality. I hold for the long term and try to ignore short term noise.Current holdings include Cake Box Holdings, Watches of Switzerland, Celsius Holdings, Springer Nature, MTY Food Group, and CTS Eventim, plus smaller positions in Greggs, PayPal, Oatly, and RWE.atilla.zambito@proton.meAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.