How Parkev Tatevosian, CFA’s view on $LULU changed

Nike and Lululemon are among the underperforming sportswear retailers, with their shares trading near 52- week lows. I wanted to know which of these two declining stocks represents a better buying opportunity at the moment .

Both Nike and Lululemon are facing similar headwinds that are hindering sales growth and even pushing them into decline. Overall, Nike is still a much larger company with sales of $46 billion over the past twelve months, while Lululemon comes right behind it.

Lululemon sales fell by 4% compared to the same quarter last year and comparable store sales fared even worse. Unsurprisingly, the stock price collapsed following this update as investors were disappointed in its performance. I'm certainly disappointed.

I own Lululemon stock in my portfolio and I had previously ranked Lululemon stock as one of the best stocks to buy this year.