10 Stocks on Jim Cramer’s Radar Recently

4. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 60

Cramer highlighted Lululemon Athletica Inc. (NASDAQ:LULU) as a top apparel brand, despite recent market struggles. He added:

“It’s well run and if you listen to them, it’s still in its infancy. But Lululemon guided down when it reported after an excellent quarter, and kaboom, it just got crushed. In a normal market, a company as good as Lululemon would be given some sort of grace period. Not this time. The stock fell 15%.

I thought then that the downside had now been baked in and Lulu’s stock had been de-risked, but it just keeps falling. It’s now down almost a hundred points, from $341 down to $247 and change. This is Lululemon for heaven’s sake. This is a company run by Calvin McDonald, one of the best CEOs anywhere. Yet the stock’s now down 35% for the year. At first, I thought the vicious decline was a sign that Wall Street’s worried about even wealthier consumers. But the real issue is that Lulu makes a lot of its clothes in Vietnam and we’re putting a 46% tariff on Vietnam effective tomorrow. That’s a huge increase. So big that it’s practically the kiss of death.”

Lululemon (NASDAQ:LULU) designs, manufactures, and sells athletic apparel, shoes, and accessories.