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Lululemon’s stock (NASDAQ: LULU), a company designing and selling athletic and casual apparel, has declined 7% in the last ten trading days (two weeks). In comparison, the broader S&P500 index remained flat over the same period. Last month, the company reported strong Q2 2021 results on September 8. It provided strong guidance for the remainder of the fiscal 2021 – with sales expected to grow at around 25% compared to 2019 and 42% compared to the pandemic impacted sales of 2020. This news sent the company’s stock soaring over 10% the following day and the stock continued to remain at similar levels for the entire month. However, the athleisure company’s stock price has come down in the last ten days.

While Lululemon has seen both its top and bottom lines grow aggressively in the last few years, there are some concerns that call for caution regarding the sustainability of the company’s growth trend. The company’s e-commerce sales, which exploded to 100% y-o-y growth in 2020, plunged to a 55% growth in Q1 2021, and then, fell sharply to only 8% in the recent Q2. It should be noted that the digital sales grew 30% y-o-y in the pre-pandemic 2019. A fall in e-commerce sales was expected with the stores reopening, but the rapidly decelerating online growth could create challenges in estimating Lululemon’s financial performance going forward.

Now, is LULU stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 50% chance of a rise in LULU stock over the next month (twenty-one trading days). See our analysis on Lululemon’s Stock Chance Of Rise for more details.

And if you are considering LULU’s stock as an investment option over a longer time frame, you can also explore Lululemon’s Revenue Comparison against its peers and history

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[1] Returns of -3.2% or lower during five-day period in 515 times out of 2516; Stock rose in the next five days in 310 of these 515 instances

[2] Returns of -7.2% or lower during ten-day period in 274 times out of 2516; Stock rose in the next ten days in 142 of these 274 instances

[3] Returns of -9.5% or lower during twenty-one-day period in 295 times out of 2516; Stock rose in the next twenty-one days in 148 of these 295 instances

Also, Lululemon’s Peer Comparisons summarizes how the company fares against peers on metrics that matter.

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