this is lululemon, dealing with heightened competition, dealing with some of the valuation concerns. similar to target. consumers kind of pulling back some of the spending on what i would call slightly overpriced leggings. i do buy them for my fiancÉe, but nonetheless, it does seem like there are a number of clouds, and again, as raymond james put it, a wall of worries and a number of concerns for investors and sell-side analysts. that's why you're seeing a continued lag this year and really adding the losses here in to 24. katie: they have a men's section. >> i know, but i'm cheap. by to target and buy things for $4.99. i don't really spend $60, though i have heard they're very comfortable. katie: they are very comfort, speaking from my husband's experience. but anyway, let's end is here. coming up, roy gori joins to us talk about what's next for the insurance giant. this is bloomberg. thi- [female narrator] around ♪ the world, 5 billion people lack access to safe surgery. children are suffering from treatable causes.. ..living with conditions many have never seen. for more than 40

our chart of the day we need to talk about it's lululemon, and it's getting hammered at least it was. there it is. on your screen, right there. the stock is down 6% as we have this there's a new 52-week low this would be the sixth consecutive day of losses, four straight weeks of losses we had matt boss on yesterday, the top retail analyst we had him on closing bell from jpmorgan he's overweight the stock, he has a 500% price target. he defended the name take a listen. >> lulu can drive the double digit top line growth. you have international it's still in early innings. less than 20% exposure to the international markets. you have men's that can still double from here accessories is still an opportunity and the total addressable market for casual, there's just no question that it's larger on the other side of the pandemic >> that's matt boss, joe, used to own the name. >> we did. >> is it worth defending here. if you own that stock, should you be seriously concerned >> i don't think if you own the stock you should be seriously concerned. i think as you and i have discussed, there's t

when i think of the word legs, you think of lululemon.n the bottom category is shifting to wide leg for the first time in a decade, this is a decade, it creates a massive headwind for the company, if it's not known for that particular product category. so, you know, when everybody wants the lululemon legging, they are able to gain market share against competition, but when the actual fashion trend moves away from that, to a wide leg product, then the consumer doesn't necessarily have to go to lulu, doesn't think of lulu for that product, and they have the idea of substituting to a cheaper brand to get that same look if you will. >> it's karen, thanks for being on. you talk about a number of microproblems and macro problems, and you're way below the street in terms of earnings. is it -- what is the biggest problem there, is it athleisure sort of run its course and now it's going to be more difficult for them, or do you think it's one of those other -- what is it that puts you so far below the street? >> look, it's very simple. the street t

. >> if we could, lululemon is interesting.lululemon last year was up 59%, and this year it's the worst per performing consumer discretion stock, and it could be down 34% year to date >> 35%, actually >> thewhy underperformance if tt consumer is -- it doesn't make sense. >> a tactical buy at wells fargo, constellation you have good exposure with that with anheuser-busch. >> yeah, post covid you have people going out and they are experiencing and they want to drink beer and spirits, and as input prices are coming down now you are on the other side of that, and it will be a question of execution and where is the constellation going to make. >> scott, can i come back to joe on lulu. listen to these statistics this is a company that has 57 gross margins and 28% operating margins and minimal debt and a 22% return on investing capital, and 50% higher than the industry average, and 25% premium to the sector, and a big discount to what it used to trade at you know, a lot of this has been about guidance around the consumer, and when it

lululemon not expected to feel the raw land will form a new team of leaders with its merchandising ands to scale go to market strategies. if that's not a mackenzie line, i don't know what is. investors are not buying it at the moment, stock is down 8% and on track for the lowest close in a year. looking at a firm shares, investors regarding the purchase now pay later stock are selling now after a federal consumer watchdog said shoppers who use purchase now pay later companies need to have the same protections as credit card users and in 60 days they will. a firm's ceo is joining us next in a fox business exclusive to talk about his point of view about these new regulations. does he love them? does he hate them? he's coming up live. ahead of the memorial day holiday everyone talks to liz podcast. we feature the most incredible decorated veteran, bob parsons, founder of the world's largest domain register, go daddy. after growing up poor as a church mouse, bob had to work several jobs to earn cash and found himself with no college plan so he decided to enlist in the marines at the height

with no plans to replace the role, lululemon trying to r redesigned to change is global and regional stock is down 4.5%, down 36% year to date kabbalistic break president trump assignee president biden's economic choices of skyhigh inflation as the president drains and american oil reserve to lower gas prices before the election, virginia congressman bob good is here on how the gop is calling out biden for rocketing food prices, stay with us. ♪ a so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management. i don't want you to move. i'm gonna miss you so much. you realize we'll have internet wai

>> i know for one our wardrobe department gave me lululemon if pants just for this upcoming friday when don't rip my pants -- yeah, they're great pants, you can't rip them. stuart: we're not going to roll that videotape either. >> oh, or you are, every time. [laughter] stuart: here's an interesting one. amazon is reportedly upgraigd alexa with a.i. technology. you know thinking more about in? lauren: okay, i have to go to todd -- do you use iowa a lex saw for anything other than than setting -- >> yo -- no, i don't use it for anything. i turn off sirri ors we don't have alexa, none of that stuff. lauren larry use her to set the alarm, and i use her for the weather with forecast. that's it. she's 10 years old. she's not up to speed with all these, you know, chat bots. so reportedly two thing it is are happening, amazon is going to put genre tiff a.i. into with iowa a lex saw -- generative and charge you for i. i don't know how much, but it would be in addition to your $140 a year prime membership. take that. stuart: you're having none of it. >> you're not doing it either, are you in. lau

central bank lululemon, we spent some time on that stock last night, falling 7% on news the company'sct officer will depart the company at the end of the month. and notable, copper pulling back after a hot run in may the metal slipping deep entire the red after the minutes were released dealers choice, b.k. what do you want to trade? >> for me, it's copper i'm long fcx, and obviously not a great day there. but i think it comes down to your timeframe on this if you're into copper, you're in it because of the greening of america, the greening of everything, frankly, that you're going to need a lot more copper for and we haven't built copper moons in years so, it's going to be c constrained. i don't think there's any change in the story, just because the fed decided for this minute, the wind was blowing one way i don't think that's a reason to change your view on copper or freeport mac >> lululemon, does it look potentially attractive with the decline of 8%? >> i don't know. i'd rather buy it higher on a quarter that sounds better than what's feared right now. >> yeah. >> and you, tim? >

remember lululemon on the high end of things, was once a darling, not just because of the pandemic, butr was seen being strong enough on the personal balance sheets to keep buying the higher end clothing what we learned back in march when they gave us a forecast for the year that came in below estimates what kind of effect it can have and down 41% over the year and a steep drop-off around march 21st, when the earnings report came out and they lowered their forecast it's been very much a tale of two consumers, but it's not just high end is good or bad, or the budget end is good, the budget end is bad that's where things get more confusing. >> a lot of ceo commentary we played there, if you're selling stuff or maybe restaurant meals, things seem like there's a very careful consumer and they're having a head wind travel seems like it's the outlier to the positiveside at least for now. >> yeah. the bookings data would show that the last comment you heard was from norwegian cruise lines when they talk about that robust kind of consumer, but they spend on experiences i guess you have to look

one is lululemon.are an athlete or brand and we seen revenues increasing year on year so forcing growth out of china and if we get a rebound in consumer confidence, there would be ways to play from an offshore perspective. haidi: senior investment advisor. more to come, this is bloomberg. ♪ >> it is the end of an era as the prime minister prepares to step down, handing power to lawrence wall who is facing geopolitical challenges. avril is in singapore. it is true that this is the end of an era. a careful handover and that does not dismiss the policy priorities. >> that's right. this has been a well telegraphed transition, but challenges abound for this new leader who was praised for his leadership. a diverse electorate is demanding transparency in the wake of a scandal which saw a top minister charged with grafting. the incoming leader has pledged to boost social safety nets ahead of election that needs to take place by november that some say could come as soon as this year against the backdrop of the

>> wearing lululemon, not fancy like the a-listers.e are one block from the met gala, we saw jennifer lopez and such. there is day of rage protest happening in new york city and short while ago we saw arrests being made and you see nypd regrouping and looking at pp special response group. someotes protests, these pro-palestinian protesters couldn't get as close to the gala tol, police told them to g ou bect of the middle of the sto they areck blocking traffic. ultimately, nypd rushed in and madee ve some arrests. we are hearing strong chants calling police kkk, calling them pigies.s. police made some arrests.th put people arrested in the van. they are regrouping, you can ng hear the chopper ahead. >> laura: we'll continue to monitor this throughout the hour. now time tmoo take the pulse ofh the nation, bad news for biden pouring in. abc news poll has trump leading by two points in the co head-to-head match up. when it comes to biden's job approval, the man is just 35%, two points away from career low and well below level that is associ

katie: i want to look backwards and your downgrade to lululemon.his position little of her big versus little. put that into layman's terms? what that means, that soul a what? adrienne: silhouette shift his head to toe top, bottom, she wear. we have been in the greater part of the last 15 years into a skinny leg denim. in the past five years, that denim trend has turned into an athleisure trend. as we come out of the pandemic, we are seeing the for year of the denim based trend that is baggy and pare back to totally different footwear. in the fall season, back to school a 15-25 female trend. she will not a things for the room in her closet and she probably has a lot of athleisure and beauty products. katie: i'm curious in your position, how closely do you pay attention to fashion trends and how to sign a form calls? adrienne: i have never felt those could sustain full-term but when you think about the top to bottom database we have turned over from the denim base bottom. we are in the uptick cycle for so these broad-based secular changes in fashion

but you look at lululemon struggles. my wife just bought online jeans ripped to hell and wide. and wide like that. what is attraction here? >> it is the cut. this is the mom jean. this is the sis the style that want. >> but they don't do a ton for the silhouette. >> here is what is important. >> or maybe they do. >>s it not just about the bottom, it is about the whole outfit. i spoke to the macys ceo and he said people are dressing not only in head to toe denim, but in a different pant, it affects their whole outfit. so they are picking out different tops or shoes. so it is an opportunity for department store or brand to try to get people to buy outfits which we know is under pressure as people are a little more careful. >> i thought denim was dead. what does it mean this ability to surf a trend for the stocks of these companies? >> it is important to be on trend and get your supply chain on a pace where youcan respond rapidly. and you have fast fashion players. they can get an idea from design. they are spotting online.

first up is the company behind vance in its hiring the lululemon former head of product.attempting to leave a turner -- lita turnaround after it reported its seventh straight quarter of declines. membership based social club rejecting a buyout offer because it didn't reflect the company's value. a short seller suggested solo house may need -- may meet bankruptcy. chipotle is getting spicy feedback on social media after some tiktok and read it uses claim the mexican fast food chain is cutting back on portion sizes. the ceo disputes claims saying that disappointed customers can get more food by giving workers a secret look by widening your eyes and nodding your head when portions are being doled out. in any case, you can follow the latest company buzz on tren go on your bloomberg terminal. jeep is charging into the all electric suv category we will speak to the company ceo next. this is bloomberg. ♪ do you want to close out? should i? normally i'd hold. but... taking the gains is smart here, right? feel more confident with stock ratings from j.p. morgan analysts in the chas

they don't want lululemon anymore. they want the cheap knockoff.ry about that? the same thing we are trying to measure. the next step after the lack of new business formation is layoffs. it is firings, disclosures. that is what needs to happen for the fed to cut rates. we will see businesses fail because they cannot get credit. we are seeing that happen with commercial downtown real estate. we see it happening with restaurants. we will see it in retail in a few weeks. we will see something that we did not see possible. residential rent realty vacancies. actual rent coming down. shirt not right now. when you lose your job you cannot afford rent so you have to double up. maybe i have to move in with their parents and that's how the rent comes down. others may sell their homes anticipating a collapsing prices. more houses will cash in before things go south then there is the final frontier of inflation. they can repeal the business and it can't be denied. stop worrying if one number can up and everything else that has happened. the fight against infla

mat mat ha ha i'm wearing lululemon.ertainly not anything fancy enough like some of the a listers are wearing. to set the scene for you, laura, we are one block one avenue from the met gala. we saw big time arrivals jennifer lopez and such. at the same time there is this day of rage protest happening here in new york city right now. a short while ago we saw some arrests being made and right now you could see nypd kind of regrouping. we are looking at the special response group. so what happened was some of these protests these pro-palestinian antipolice protesters were trying to get as close as possible to the met gala. they couldn't get as close as they wanted to. politic ultimately got on the loud speaker and told them to get out of the middle of the street because being in the middle of the street is unlawful. they are blocking traffic. ultimately nypd rushed in and made some arrests. we are hearing some very strong chants here. calling police kkk, calling them piggies. taunting police. the scene was pretty tense just

growing sport lifetime fitness expanding its pickle ball offerings, including a new partnership with lululemonthes. adding courts to many of its 200 locations. that is a game changer in the gym space. andre agassi is one of their connections. >> now there is jr. -- junior pickleball. >> also a growth industry for orthopedic surgeons. achilles, knees, hamstring. enjoy the pickleball, good social game and easier than tennis. great to have you back >> great to be back "closing bell" starts right now. >>> welcome i am scott wapner. make or break hour begins with a rally, stocks going for the fourth consecutive day of gates but he moved back from the april bottom which some suggest is a sign there could be more to go. we will asked experts over the final stretch whether they agree. the scorecard with 60 minutes to go in regulation looks like that, a big green for most of the day but it has been leaking over the last 30 minutes. nasdaq is red. bond yields are mostly lower which has helped the russell 2000 outperform

with both nike and lululemon feeling impaired. stock for over two years now and lulu's now down 35% from its all-time highs last december. they're not just weighed down but unusual worries about the tapped-out consumer. they're also struggling with endless competition. everybody in the space is going against nike. lulu's up against a host of smaller fast growing aechlt at haechltleisure brands. nike's looking at a 1% or 2% revenue growth this year. lulu only got 11 to 12% growth when they gave you their full-year forecast. wall street wanted 14. last year it was much higher than that. where can you find growth in this group? tonight i want to highlight two growth stocks in the apparel footwear and apparel space that are still working that i don't talk to you enough about i'm holding. and i like they very much. the red hot, like smoking on footwear and apparel brand and deckers outdoor which we like for its running shoe. although it's also got uggs and tevas. when on reported a spectacular quarter it showed you some brands are work

lululemon announced the departure of their product chief. slashing the company's price target to $385. shares are trading at $297. as it faces more competition from athleta, carhart. >> all right, we'll see you in a bit. >>> up next, the new apple just a few weeks ago, josh brown made a major call claiming one of the other mega caps is actually the name investors are chasing now. he'll reveal it. we'll discuss it. how he's navigating the trade. we're live at the new york stock exchange. you're watching closing bell on cnbc. dow down 253. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring if you think about it. at pgim, finding opportunity in fixed income toda

. >> someone said the confidence of this man, the delusion and the lululemon of it all >> oh, man. >> good morning. it's thursday, may 30th. >> yes. here's drew with the forecast. >> here comes the sun. it's beautiful out there this morning a live look from our exploratorium camera. you look at current sky conditions. it's another morning where we are fog free. so we have sunny skies everywhere, including the coast. so you know it's going to be another warm one if you like. yesterday. love today because temperatures are a few degrees warmer. in fact, this afternoon. so we begin in the 50s for the most part. your light jacket. you need it for the next 1 or 2 hours. but post 8 a.m. those temperatures will feel quite nice. and then we'll get warm to hot this afternoon. so looking at the coast first thing, we'll find temperatures topping out in the upper 50s to lower 60s. very similar to where we were yesterday with a lot of sunshine as we head around the bay shoreline. it is bright out there. it's going to stay sunny this afternoon. it is warm for this time of the year, upper 70s to lowe

that's not your style at all but i will say one of the reasons i think the lululemon stock is comingown is what you bring to the party. >> our consumers like it and i think what's happening for us, we're hitting other channels and categories and that is how we've been successful and starting to operate better globally which has been important we've got a little time under our belt the pandemic is behind us a little bit i think you're starting to see what the company will look like post-pandemic and how it will operate post-pandemic. >> the analysts seem to be wondering what's going to happen to china i'm going to go there just because i know that i think your brand could resonate bigger than it has. >> we've done a nice job in china but we've hit a tough patch during the pandemic and coming out of that now, one of the most important things we have to do right now is refurbish our stores so we are making a capital investment right now as we speak in our stores 600 must stores in greater china to go ahead and make sure we continue to resonate with that consumer there. >> okay, one last

the ai trade gaining but with the consumer names for every walmart and costco there's a peloton, lululemon and nike which are just dismal. >> mcdonald's. >> at the end of the day every trading day has to go in the bullish or bearish column and every week bullish or bearish. all sectors were coun except tech, telecommunications, it's netflix and google and that stuff and tech itself. all sectors down the mid cap, dow, utilities were down, home builder were down, a sloppy week. to dan's point about equal weight versus actual weight. without the move in nvidia and some of the others, the actual s&p would not have been up 3 basis points, it would have been down as well not a good week. >> how about the nasdaq? same thing. >> it's the same thing influenced by -- and that gets to the concentration, nothing new. to put it in perspective, top ten stocks are 30% weight. last 50 years average around 20. markets are biased towards winners. people who take share. 30 is high and some point, that continues to be an issue. >> we have been complaining about this concentration for a long time and how can t

inflation going higher and focused on this high end consumer, i can go look at disney, starbucks, lululemon. lulu and starbucks are down 30% from their 52-week highs. talking about a consumer that's weakening. home depot's down 15% from its recent 52-week high. so, to me, it's great that we're spending so much time on this one story, it's a huge retailer and they're benefits from unique trends, but there's a lot of other things, at least through the lens of the stock market in retail and consumer -- >> doesn't all of that underscore the notion that walmart should do well? the fact that the starbucks customer is not going there? people are not going to disney? >> going to be a really crowded trade. so, when i think about this, if you are telling me there's an inflation story that for another 12 months, jamie dimon was just talking about this, we keep hearing this. so, sooner or later, that is going to put a massive tax on the consumer, and in my opinion, it could -- i don't mean crashing down, but they could hit a wall very quickly. so, to me, that's the fear we get the stagflationary enviro

affluent consumer, we've also seen, though, whether it's cosmetics and beauty, heard it from lvmh and lululemon and nike, and starbucks, some of these companies have company-specific issues in terms of competitive landscape, in terms of just where they were trading, in terms of growth rates in lulu's case, it's hard to replicate over and over again. the consumer is not falgling apart. we get a backdrop to the market, if we go sideways on the data, we're going slightly lower on rates and probably higher on the stock market. i don't feel comfortable as an a -- this week, everything went up, stocks, bonds, crypto, it was kcurrencies and gold. it's concerning. it does feel like there's risk aggression when we spent half this week talking about meme stocks, that bothers me. when i think about the money that's still in money market funds, i think of essentially there still is a lot of fear, plenty of people under weight, tons of benchmarks this year based upon the fear of seeing what the market did going into this year and look what it's done now, the risk trade is to the higher. >> tim said thatearl

snapped up a former lululemon chief product officer as its new vens global president. the new hire which owns vans, brands like supreme, northface, they said it's a much needed step in the right direction. that's why you're seeing shares up 8.5%. >> all right kristina thank you. >>> we're just getting started >>> up next, goldman's tony pasquiariello tells us which sector he is calling the best game in town >>> live at the new york stock exchange, you're watching "closing bell" on this friday. to start a business, you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow! >> no application fee if you apply by may 31 at university of maryland global campus, offering online and hybrid courses and lifetime career services. learn about our more than 125 degrees and

what about the nike of the world or the fancy pants lululemons in. >> yeah, we have seen those in any discretionary spending pullback, those are names that tend to get hit. so i think as we look at earnings for the next couple of quarters, those are names that i would have a bearish outlook on. liz: mark kevin, thank you both. >> my pleasure. liz: great to see you. and thank you to kevin for matching my -- >> i didn't get the memo. [laughter] liz: thank you both. to recap, the bad news bulls are back. renewed rate cut hopes are lifting investors' sentiment after initial jobless claims jumped more than expected last week. the bulls are also endorsing tech giant amazon, shares notched a new all-time high and are on track for a record close. amazon is a recent aa decision to the dow jones industrial average which itself is on pace first longest winning streak of this year. right now deepen an eye on it, the dow is up 318 points. >>> all right, you want a perfect example of how fickle the market can be? look at this. back in february shares of chip design giant arm holdings surged more th

costco, lululemon after the bell. where is the opportunity given some of the size of the moves?e it as a best in class retailer. we have a term we use at d.a. davidson called best in breed and it's our top long-term ideas and we would put ulta there. the stockunder performed there. it is now the cheapest name in our space on a p/e basis except for best buy which always trades at a discount. the multiple is compressed. we think that's an opportunity. we get that they've lost a little bit of market share this year to sephora, but we think that's well known in valuation. in fact, we think sephora headwind levels off now. sephora built a lot of stores in kohl's over the past year and starting to cycle against that and think those market share losses even out and name trading 14 times below its historical averages. >> we'll check in with you after the report pounding the table on ulta there. michael baker, from d.a. davidson. >>> stay with the consumer theme. when it comes to autos are you spending more on your car payments? you are not alone. phil lebeau is here with some new surpri

parent company of big brands like the north face, timberland, and van's shoes announced that former lululemonn late july. so some moves there, vf corp., 7% higher. back over to you guys. >> dom, thank you. again, some really big retail movers we've been watching next week we will get more retail earnings as well. let's take a look at what's been happening with the markets quite a turn with the major averages we've been in the red all morning long and that changed once we got the pce number it did give a little bit of relief to the stock market, at least. you'll see dow futures up by 105 points s&p futures up by about 18 nasdaq is up by 51 treasurys got a little weaker, the lowest we've seen in a few days that does it for us today. have a great weekend we will see you back here on monday right now it's time for "squawk on the street. >>> good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are steady as core pce comes in somewhat friendly, the softest annual gain in about three years. ten years, almost back to 4 1/2 as we head int