LULU
Texas AG Probes Lululemon Over Forever Chemicals
Article Summary
HOLD- Lululemon Athletica Inc. (NASDAQ: LULU) is being investigated by the Texas Attorney General over the potential presence of per- and polyfluoroalkyl substances (PFAS), or forever chemicals, in its products, which could run counter to its wellness-focused messaging and mislead consumers.
- Lululemon Athletica denies using PFAS, which may be linked to endocrine disruption, infertility, cancer, and other health issues, and says it phased out the substance in small percentage of its products in fiscal year 2023.
- The investigation will examine whether products contain PFAS that consumers would not expect, testing protocols, and supply chain practices to determine whether Lululemon Athletica's products comply with safety standards it touts.
- The yogawear maker maintains that its products meet or exceed global regulatory, safety, and quality standards and requires vendors to regularly conduct testing by credible third-party agencies.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 4.9% | 25% | 20.0 ptsMinimal (4.9%) - Very weak |
| EPS Growth Next 5Y ? | 2.7% | 25% | 10.0 ptsVery Weak (2.7%) - Minimal expectations |
| Target Price Upside ? | 10.5% | 20% | 50.0 ptsMeets Minimum (10.5%) - Target: $177.41 vs Current: $160.60 |
| Gross Margin % ? | 56.5% | 15% | 80.0 ptsVery Healthy (56.5%) - High-quality margins |
| Drawdown from 52-Wk High ? | -52.8% | 15% | 100.0 ptsDeep Discount (-52.8%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About LULU
- lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally.
- It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities.
- The company also provides fitness-inspired accessories.
- It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website.
- The company was founded in 1998 and is based in Vancouver, Canada.