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Lululemon is on outdoor patio Over the past almost a year, lululemon athletica corporation. (Pink sheets, lulu)Has been beaten down to its lowest point simply because the spring of 2011.That cute yoga apparel company loved by both males and females albeit for different reasons has gotten little love from wall street as of late.The stock is treading to some degree above $39, Ralph Lauren Australia right near the foot of its 52 week range of $36.26 $77.75.Annually the stock is down 43%. The question lots of are asking is this: “What will give, how could a stock fall from wall street’s embrace so quickly and severely?It’s a question that has an easy to use answer:Lululemon’s growth has slowed dramatically within the last several quarters. Sluggish growthfirst we’ll read about same store sales;This will help us determine how established stores are performing annually. (Click to increase) I’m no math magician, but i did pay enough attention in statistics class to understand a strong negative association when i see one.In such cases, the trend maybe have you believe that as time increases, same store sales growth goes down.A few few scenarios that might explain this:1)Fewer customers are shopping at confirmed stores.2)Customers are spending less money at conventional stores.3) A variety both1 and2.All of case the fancy way of saying that lululemon has, it might be, lost being able to attract customers to stores. Despite same store sales growth is slowing, overall revenue is still trending upwards although very sparingly. (Click to add ralph lauren jackets volume to) In general, alternatively, has remained largely flat over the last few years. (Click to enhance)If you think about that same store sales growth is deteriorating, revenue keeps growing only ever so slightly, and net gain growth has flatlined, it becomes pretty clear why the stock is usually pummeled. So there it is.At the end at the time, it all relies on the numbers, and lululemon’s numbers paint an ugly idea.But what to do now?Enterprise still exists, and the company is still very profitable it’s just a less attractive growth prospect than it once was.A very feasible prospects is that an ambitious company steps in to acquire lululemon, perhaps to breathe some life into a brand which have lost some of its luster.Below i’ll discuss some possible bidders and examine the chance that they make an offer.Organization(New york stock exchange:Vfc)As a possible acquirer.The company has an expansive brand portfolio this includes the north face, vehicles, jansport, nautica, or anything else.The company is renowned for making high profile bids, notably the purchase of timberland for $2.3 billion in late 2011.Once, timberland was affected by compressing operating margins and falling profits.Corp.The idea would bolster its presence in women’s activewear.Before now owns lucy, which competes immediately with lululemon, but lucy’s brand recognize is nowhere near lululemon’s level.Corp.Stands out as the most likely suitor. Nike, corporation. (New york stock exchange:Nke)Is another name which was mentioned.Nike has the style and scale, supply chain procedures, and a bunch of cash.But and this is a big but nike has a restricted brand portfolio, and has no an extensive history of scooping up brands outside of its core footwear business, save for its purchase of hurley international in 2002.Yr after, nike sold cole haan to a private equity finance firm, signaling you’re able to send intention to focus on just a few core brands.At nowadays, i think a nike bid can be quite unlikely. Adidas ag(Otcqx:Addyy)Has been specifically mentioned as a potential bidder;But this kind of nike, adidas has a limited exchange history.Its last major pay for was of reebok in 2006.Furthermore, the company has been via sluggish sales and earnings growth, so a bid for lululemon appears to be unlikely.Adidas investors would be wary of combining two struggling companies, especially at the expenses of adidas’s balance sheet. While i’m not sure of any analysts who have cited an under armour, corporation. (New york stock exchange:Ua)Wager, i think it bears bringing up because both companies compete in similar markets.At this era, under armour is amazingly unlikely to make a move for lululemon.Company is focused on continuing to grow the under armour brand, and picking up lululemon would only slow down under armour’s momentum and place an unnecessary burden on the business’s balance sheet.The odds of this happening are negligable. While i’ve not heard the gap,Corporation. (New york stock exchange:Gps unit)Come up just as one suitor, i think that the company would like to know that bolstering its limited activewear clout.Corp.Is the reason lucy, athleta lacks the brand inspire of lululemon.Gap has excellent global exposure which lululemon undoubtedly lacks. Too, we have seen rumors that lululemon founder dennis wilson may have plans to take the company private, but whether an offer will ever surface is up rising, especially due to the fact he would need to raise a significant amount of cash to cover the campaign.Corp.Being the majority of important feasible;But with the slumping sales pattern that the company is trapped in, i think the company continues trading range bound until either 1)An acquirer on or 2)The particular shows significant progress in growing same store sales and revenue.While lululemon may very well turn out to be a very profitable comeback story, i’m personally of the opinion that we now have much better places to park your money. Editor’s take note of:This article discusses one or more securities that don’t trade on a major exchange.You should be aware of the risks associated with these stocks. (Considerably. )

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