Slide in Lululemon fires up takeover talk

|About: Lululemon Athletica Inc. (LULU)|By:, SA News Editor

Shares of Lululemon (LULU) are higher in premarket trading off of a Bloomberg report indicating Adidas (ADDYY) or V.F. Corp (VFC) might be interested in buying the company out.

A 34% YTD decline in Lulu's share price has brought questions on fair valuation back to the forefront.

Though the forward P-E ratio on Lululemon hasn't been lower since 2009, missteps by management and new competition has taken some of the bloom off the rose.

LULU +1.2% premarket