Lululemon’s China Backlash May Be Hiding a Bigger Valuation Story

Lululemon faced backlash in China after using a Japanese drum at a promotional event on the Great Wall of China, sparking millions of views on Weibo. While the incident adds to existing concerns, the stock's 50% year-to-date decline has created a valuation opportunity. Trading at a PE ratio below 10 for the first time in over a decade, the company continues to exceed earnings expectations despite growth deceleration. Analyst price targets suggest upside potential, though risks remain until new CEO Heidi O'Neill takes the helm in September.