Lululemon (LULU) shares rose more than 5% at times this week, which the author attributes mainly to a rotation from tech stocks into consumer discretionary, after the stock fell more than 75% over five years. The company faces declining revenue: second-quarter 2026 revenue fell 4% to $2.4 billion, comparable sales dropped 9%, and full-year guidance was cut under new CEO Heidi O'Neill. Lululemon has no debt, about $1.4 billion in cash, and is buying back shares. The author says the stock looks cheap, but sales are still falling, so the author does not think it is a buy right now and wants to see a turnaround strategy.
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