If you're looking to buy the company, it is the cheapest it's been since the financial crisis. Pretty crazy the drawdown the company has gone through. I believe the market is worried about the potential of a brand fallout and tariffs continuing to impact the company.
Retail companies are fickle and extremely hard to analyze. From a pure numbers perspective, LULU is without question cheap. However, sales are slowing, guidance is not all that good, consumers are pulling back, and tariffs have the potential to hit the bottom line.
Lots of headwinds and not very many tailwinds right now. If you're looking for a contrarian play in the fashion space, I don't think it's all that bad of an entry. However, further downgrades in guidance or softer results and we could see it below $200.
If someone wanted to buy at this point, I wouldn't have any issues with it. Would just tell them to expect some pretty large volatility.