The video presents a fundamental analysis of Lululemon (LULU) stock following a recent 18% price drop after disappointing quarterly financial results. Despite expressing disappointment and acknowledging the stock's underperformance in 2025, the analyst maintains a "buy" rating. The analysis mentions net revenue increased 7% to $2.5 billion, and international net revenue increased 22%. However, revenue in the Americas only increased by 1%. It is expected by the analyst for the management team to lean into international business due to high tariffs impacting US business. Gross profit margin is reported to decrease, but its cost of capital decreased, as the risk free rate dropped. The management also repurchased 1.1 million of its shares for a cost of $278.5 million, The video concludes the shares are undervalued and the recommendation is to buy the stock, the target price being 241.07 dollars.