Should Investors Be Sweet Or Sour On Lululemon?
December 10, 2015
James Gellert, CEO of Rapid Ratings International, a service that ranks companies on their financial health and measures them against peers, currently gives Lululemon a rating of 94 out of a possible 100. Gellert notes that the sector average ranks far lower, at around 69. “The market is reacting badly. Lululemon missed expectations, but they only missed slightly,” he says. “Our financial health rating is the indicator of how effective a company is run and operated and how resilient it is against global peers and if it can weather a storm coming from increased competition, a poor holiday, or if they have one missed earnings results estimates. These can knock a weaker company down, but they shouldn’t knock Lululemon down.”