$Lululemon Athletica(LULU)$ Lululemon Athletica's Q4 performance exceeded expectations, with revenues rising 16% and gross margins growing by 4.3%. However, increased competition and price-conscious consumers have led to a decreased market cap and short-term headwinds.
While the retail environment in the United States has been recently challenging, I believe that the long-term fundamentals of the company outweigh any short-term headwinds, and the recent selloff provides an excellent opportunity for value.
I encourage potential investors to remain unemotional in volatile price action, and trust the fundamentals and management of a prominent brand and a very cash-positive business.
My one year price target remains at the technical support level of $515 with an upside of 44%.
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