Did Lululemon Stock Sink Because of Organized Theft Rings?

If Lululemon stock wasn’t under enough pressure due to weakness in U.S. sales, the company is now faced with another headache.  Theft!

As you know, there’s been an alarming trend of brazen shoplifting attacks in the U.S.  I’m sure you’ve seen the footage.  Shoplifters waltzing into a store, stealing thousands of dollars worth of merchandise, and strolling out of the store without a care in the world.

Security guards stand by and watch it all unfold.  Oftentimes they’re told not to interfere so as to avoid lawsuits.  Yes, we now live in a world where a store can be sued for stopping a shoplifter. 

Sadly, this trend has decimated the retail presence in some of our biggest cities.  We’re talking about San Francisco, Los Angeles, and Houston.  In New York, some drug stores actually shut down because they could no longer keep shoplifters from ripping them off.  This resulted in locals having to find new drug stores further away, and of course plenty of job losses.  

From an investment perspective, these thefts have also led to increased liabilities for public companies.

Consider Walmart (NYSE:WMT), for instance, which lost $6.5 billion from theft in 2023.  That’s billion with a “B.”

And you know what really makes me crazy?  When folks trivialize this kind of theft because “Walmart is a huge corporation.”  As if that matters.  Nevermind that this theft costs a lot of jobs, guts local tax revenues and weighs on the stock’s valuation.  A stock, by the way, that is a common holding in most retirement plans. 

Of course, it’s not just behemoth corporations like Walmart that are being affected.  Lululemon, for instance, recently announced that it had been the target of a massive theft ring that swiped hundreds of thousands of dollars worth of merchandise.  While that may not seem like much compared to the $6.5 billion Walmart lost, it’s definitely enough to pressure Lululemon stock.  But is it enough to throw the stock off course?

Why Lululemon Stock will be just Fine

I actually wrote a piece about Lululemon a couple weeks ago following a massive selloff of the stock.  This, after falling short of expectations.  The stock fell more than 30%, and at the time, I suspected it had crossed over into oversold territory.  I even noted that as long as the company could maintain its impressively high margins, the negative sentiment on Lululemon stock was a bit overdone.  Indeed, I was right.

I wrote that article on April 15th.  Seven trading days later, it was up more than 10%.

Of course, while a 10% gain in seven days is nothing to sneeze at, it’s also not the type of gains we’re looking for.  After all, here at Energy & Capital, we’re regularly delivering double-, triple-, and even quadruple-digit gains on a regular basis. 

In fact, just last month I alerted you to a stock called MindMed (NASDAQ: MNMD), which was trading at a steep discount at the time.  So I told you about it on February 26th, when it was trading at around $4.90 a share.  Less than a month later, it hit a high of $12.22 a share.  That’s a gain of 149.3%.

That, dear reader, is how to get rich in this market.  And as luck would have it, I have a new stock to share with you that I believe will deliver gains in excess of 132% in the next six weeks.  I wrote about it in this investment note which I just published. 

Don’t get me wrong.  Indeed, I have no issues with locking in a quick 10% on Lululemon stock.  But I’m far more interested in doubling my money within one to two months.  And I suspect you are, too.  Here’s how you can do that right now.

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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